Buy Prestige Estates; target of Rs 2295: Motilal Oswal

Motilal Oswal's research report on Prestige Estates

Prestige Estates (PEPL) has a diverse portfolio with a presence in the residential, office, retail, and hospitality segments. The company’s 1HFY26 incremental BD of INR331b and a launch pipeline of INR770b are expected to drive a presales CAGR of 40% over FY25-28, reaching INR463b by FY28. PEPL is expanding its office & retail segment to 50msf and scaling up its hospitality portfolio. As a result, office and retail rental income is likely to cumulatively clock a 53% CAGR to reach INR25.1b, while hospitality revenue is expected to post a 22% CAGR over FY25-28, reaching INR16.0b. Commercial income is projected to improve to INR33b by FY30E as all underconstruction assets become fully operational. PEPL has rapidly gained market share in MMR, entered the NCR market with significant traction, and is also scaling up in Pune, which will generate incremental income streams.

Outlook

Therefore, we remain highly confident in PEPL’s growth prospects and reiterate our BUY rating with a TP of INR2,295.