Prestige Estates stock gets rare 'double-upgrade' from Jefferies, fresh target at Rs 1,600; shares jump 8%

Prestige Estates Projects Ltd reported an 85 percent drop in consolidated profit for the December quarter, falling to Rs 17.7 crore.

Bengaluru-based realty player Prestige Estates emerged as one of the top gainers on the Nifty 500 index in trade on February 1, after international brokerage Jefferies gave the stock a double-upgrade.

Jefferies has issued a double-upgrade on Prestige Estates, issuing a 'buy' rating and raising the target price to Rs 1,600 from Rs 1,420. The company expects approvals and launches for projects worth Rs 30,000 crore in the coming weeks.

At 9.50 am, shares of the firm were quoting Rs 1,458.65, higher by 7.3 percent on the NSE.

The firm's customer collections grew 19 percent QoQ and 5 percent YoY to Rs 3,260 crore. Lease income is projected to rise from under Rs 1,000 crore in FY25 to over Rs 4,000 crore by FY28. Management also highlighted a record office leasing year in 2024, with 4.5 million sq ft leased and high occupancy rates- 90 percent in offices and 99 percent in retail.

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Prestige Estates Projects Ltd reported an 85 percent drop in consolidated profit for the December quarter, falling to Rs 17.7 crore from Rs 116.3 crore a year ago, due to lower income. Total income declined to Rs 1,697.9 crore in Q3 FY24 from Rs 1,970.5 crore in the same period last year, according to a regulatory filing.

In its quarterly earnings show for the three months ended December 31, 2024, Prestige Estates reported a 43.4 percent fall in sales, as the firm did not launch any fresh projects during this period. The company’s sales stood at Rs 3,013.5 crore.

"Despite the absence of new launches during the quarter, Prestige Group achieved sales of Rs 3,013.5 crore in Q3, FY25, with a total area of 2.23 million sq ft sold across 888 units. The company maintained strong pricing, with an average realisation of Rs 13,684 per sq ft, and recorded healthy collections of Rs 3,257.5 crore during the (December) quarter," said the firm in a filing with the exchanges.

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