Prestige Estate Shares Gets Yes Securities' 'Buy' Rating As It Re-Initiates Coverage
The brokerage projects a 23% upside in the stock from current levels.
(Prestige Estate Primerose Hills/ Photo source : Company website)
The decline in pre-sales in FY25 was largely owing to lack of launches caused by delays in approvals in Bengaluru market. However, with approval process now normalizing and new portal’s stability, new launches have regained momentum for Prestige Estate. The company aims to launch 44.1 msft inventory in FY26 having a gross development value of Rs 436 billion across Bengaluru, Chennai, NCR, Goa, Hyderabad, and Mumbai markets.
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Yes Securities Report
Owing to the robust growth visibility for FY26-FY27 in residential segment along with stellar buildup in annuity portfolio and healthy balance sheet position with debt/equity of ~0.42x, we expect Prestige Estate Projects Ltd. to deliver strong performance in coming years and rate the company as our preferred pick from the sector.
Moreover, company possesses developable land bank of ~704acres (primarily in Bengaluru) for future growth.
A healthy balance sheet coupled with strong cash flow generation will enable Prestige Estate to enhance business development activities in newer geographies.
We have valued the Prestige Estate on SOTP basis, arriving at a target price of Rs 2,025 (including BD premium of 50% on residential portfolio).
We re-initiate on the company with a Buy rating.
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