Buy Prestige Estates; target of Rs 168: Firstcall Research

Firstcall Research report on Prestige Estates Projects

"Prestige Estates Projects achieved a turnover of Rs 4753.00 million for the 2nd quarter of the current year 2013-14 as against Rs 2414.10 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs 1474.80 millions and a net profit of Rs 776.20 million against Rs 456.90 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs 2.22 for the 2nd quarter as against an EPS of Rs 1.39 in the corresponding quarter of the previous year."

"At the current market price of Rs 152.80, the stock P/E ratio is at 15.56 x FY14E and 12.98 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs 9.82 and Rs 11.78 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 46 percent and 47 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 10.73 x for FY14E and 9.29 x for FY15E. Price to Book Value of the stock is expected to be at 1.75 x and 1.54 x respectively for FY14E and FY15E. We recommend 'BUY' in this particular scrip with a target price of Rs 168 for Medium to Long term investment," says Firstcall Research Report.

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