Buy Prestige Estates; target of Rs 786 HDFC Securities

HDFC Securities is bullish on Prestige Estates has recommended buy rating on the stock with a target price of Rs 786 in its research report dated October 03, 2023.

Broker Research

October 03, 2023 / 16:02 IST

Buy

26 Aug, 2025 12:21

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HDFC Securities' research report on Prestige Estates

Prestige Estates (PEPL) registered the highest-ever annual presales in FY23, at INR 129bn (+24% YoY), on the back of 16msf of new launches and robust presales in MMR at INR 27bn. Non-Bengaluru sales climbed to 41%, from 20% in FY22. In FY24, it expects annual presales to grow by 25% YoY growth to INR 160-180bn. It expects to achieve this with a strong launch pipeline of INR 275bn. This includes Prestige city in Hyderabad and Prestige Park Grove Bengaluru, each having a GDV of INR 70bn. In addition, Prestige Ocean Towers and Prestige Nautilus in MMR will also be launched, with total GDV potential of INR 90bn. In FY24, it will launch its first project in NCR, Prestige Bougainvillea Gardens, with a saleable area of 3.1msf.

Outlook

To maintain the growth momentum, PEPL is targeting residential BD capex of INR 40bn annually. We have increased our residential pricing assumption, increased the value of MMR office assets and increased our hotel valuation. We maintain BUY, with an increased SOTP-based TP of INR 786/sh.

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