Motilal Oswal's research report on Prestige Estates Projects
Prestige Estates Projects (PEPL) reported bookings of INR30b, which was down 23% YoY and 36% QoQ (13% below estimate) on account of muted launches and lower inventory. PEPL launched 1.9msf vs. 3.1msf in 1QFY24 and 0.8msf in 4QFY24. Further, the company began the quarter with an inventory of INR13b (vs. INR16b at beginning of 4QFY24), indicating just seven months of overhang. Sales volume also dipped 25% YoY/30% QoQ to 2.9msf, while realizations were up 4% YoY to INR10,600/sf. In terms of value, contribution from Bengaluru was down to 43% vs. 53% in FY24, as the contributions from Hyderabad and Mumbai scaled up to 32% and 23%, respectively.
Outlook
we believe the stock will further re-rate. Reiterate BUY with a TP of INR2,100, indicating a 20% upside potential.
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