Buy Prestige Estates Projects; target of Rs 675: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on Prestige Estates Projects

PEPL reported sales bookings of INR90b in 9MFY23 and expects to end the year with pre-sales of over INR120b on the back of 10msf of new project launches in 4QFY23. Further, by FY26, the company targets to double new bookings in the residential segment to INR250b, with a contribution of INR150b coming from non-Bengaluru markets. While it already has presence in Mumbai and Hyderabad, it is scouting for new opportunities in NCR and Pune. In Mumbai, PEPL currently has five projects in the residential segment and is evaluating four more opportunities in the city.  By FY26, PEPL aspires to generate INR100b in pre-sales from Bengaluru, INR50b from Mumbai, INR25b from Hyderabad, INR15b from NCR and Pune, and INR15b each from Chennai and other southern markets. With a project pipeline of 73msf and focus on business development across markets, PEPL intends to maintain new launches at 30msf+ over the next three years. After the success of its flagship township project Prestige City, Bengaluru, it has launched a similar project in Mumbai (Mulund) and will replicate the same in Hyderabad and Goa.

Outlook

Once the commercial portfolio fully stabilizes over the next five to six years, it will generate rental income of INR32b, which is right now not fully implied into the current valuation. We reiterate BUY with an unchanged SOTP-based TP of INR675, implying 63% upside potential.

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Prestige Estates - 22 -02 - 2023 - moti