Brokerages Bullish On This Real Estate Stock Even As Profit Fell 53% In Q4

Shares of Prestige Estates Projects were rising on Thursday morning despite reduced profits as the company reported strong pre-sales, prompting brokerages to maintain their positive view of the company.

What Happened: Prestige Estates’ net profits in the March quarter fell 53.32% year on year to ₹235.9 crore. In the corresponding quarter of the previous year, it reported a net profit of ₹505.4 crore. Its revenue declined 17.77% to ₹2,164 crore. EBITDA fell 9.29% to ₹896.2 crore.

The company reported its highest ever annual sales of ₹21,040 crore up by 63% in the previous year. It also recorded its highest annual collection at ₹11,954 crore gaining 22% year-on-year. The company also saw record bookings of ₹21,000 crore in FY24 increasing 63% from the previous year.

The company has given a launch pipeline of ₹60,000 crore of gross development value for FY25.

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Brokerage Views: Motilal Oswal reiterated its “buy” call and increased the target price to ₹1,825. Based on higher launches, the brokerage increased its pre-sales estimates by 8% and 15% for FY25 and FY26. The ₹60,000 crore launch pipeline has improved growth visibility in the near term.

Nuvama Institutional Equities also maintained a “buy” call with a target price of ₹1,940. Nuvama sees the pre-sales and leasing trajectory for the company remaining strong on the back of improved office cycle and growing housing demand.

HDFC Securities maintained its “buy” call and raised the target price to ₹1,704 on better-than-expected pre-sales and realisation, further expansion into new markets and improving visibility on office assets leasing.

Price Action: Shares of Prestige Estate Projects were up 0.58% at ₹1,513.90 on Thursday morning.

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