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ICICI Securities: Prestige Estates Projects - All Eyes On Annuity Assets 

ICICI Securities: Prestige Estates Projects - All Eyes On Annuity Assets

Prestige Estate RMV Stage 2, Sanjay Nagar, Bangalore Project (image: Company website)
Prestige Estate RMV Stage 2, Sanjay Nagar, Bangalore Project (image: Company website)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Prior to the onset of Covid-19, Prestige Estates Projects Ltd. had a strong year across residential, leasing and hospitality segments.

FY20 was also a year of significant expansion in new markets of Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) along with stake buyouts in annuity projects.

While Covid-19 has impacted operations in H1 FY21 across segments, with gradual improvement expected from H2 FY21, we remain bullish on the company’s long-term prospects.

We believe that the company can clock rental income of Rs 11.6 billion in FY23E (estimated enterprise value of Rs 127 billion) which acts as a cushion to consolidated FY22E net debt levels of Rs 88 billion.

Any potential stake sale to fully or partially reduce debt in its rental/hotels business is a key trigger for the stock.

Click on the attachment to read the full report:

ICICI Securities Prestige Estates FY20 Annual Report Update.pdf

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