'Buy' Prestige Estates, Maintains HDFC Securities, But Lowers Target Price — Here's Why

Prestige Estate has a well-diversified model with strong mix of annuity and residential asset class and Pan India presence. Prestige Estate moat lies in acquiring land at low cost and this helps to re-calibrate or offer better pricing to achieve sales velocity and better IRR’s..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Prestige Estate Projects Ltd. had a tough time navigating approval challenge, which resulted in weak 9M FY25 presale of Rs 100 billion versus Rs 230 billion of FY25 guidance. Whilst it may unnerve investors looking at short term, the land is not going anywhere and will eventually convert into a launch. We had written earlier in our note ‘Approval challenges may play spoil sport’ about Bengaluru facing approval issues and the delay extended by one quarter. Approval scenario seems to be improving now, with RERA coming in for Prestige, Sobha and Brigade for their Bengaluru projects. We believe that presales underperformance is more of approval delays rather than demand issue, and hence we expect quick presales recovery, with Prestige Estate likely achieving Rs 100 billion+ presales in Q1 FY26, driven by Rs 110 billion of Indirapuram project. Prestige Estate annuity business has started gaining momentum with initial prelease tieup in BKC, Aerocity and Lakeshore projects. With the recent fund raise of Rs 50 billion, balance sheet is healthy and debt under control with net D/E as of Q3 FY25 at 0.37 times. Prestige Estate has a well-diversified model with strong mix of annuity and residential asset class and Pan India presence. Prestige Estate moat lies in acquiring land at low cost and this helps to re-calibrate or offer better pricing to achieve sales velocity and better IRR’s. We remain constructive with Buy rating and SOTP based target price of Rs 1,914/share. (adjusted for fundraise shares dilution)..Click on the attachment to read the full report:.HDFC AMC Well Poised To Sustain Outperformance, Says Motilal Oswal; Maintains 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Prestige Estates, Maintains HDFC Securities, But Lowers Target Price — Here's Why

HDFC Securities remains constructive on Prestige Estate with Buy rating and SOTP based target price of Rs 1,914/share. (adjusted for fundraise shares dilution).

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