Buy Prestige Estates; target of Rs 270: Religare Capital

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26 Aug, 2025 12:21

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Religare Capital`s research report on Prestige Estates Projects New sales remain buoyant: PEPL reported pre-sales of 2.2msf/Rs 12.9bn (+21% YoY, flat QoQ) helped by new launches (2.8msf) in H1FY15. With this, the company achieved 52%/49% of its sales/launch annual targets in H1FY15. From here on, numbers should remain strong given an extensive launch pipeline across south India, including entry into Hyderabad. Collections improve as well: PEPL’s Q2FY15 customer advances came in at Rs 8.1bn (+31% YoY/+6% QoQ) as the sales momentum remained strong. Advance receipts for H1FY15 at Rs 15.7bn were 54% of the mean annual target of Rs 29bn, and should grow steadily as bi-monthly installments for recent (H1FY15) sales start coming in. P/L numbers to remain flat QoQ: With not many new projects expected to start contributing to revenues in Q2FY15, revenue/PAT for the quarter should remain flat-to-slightly lower (our estimates at Rs 5.3bn/Rs 1bn, -5%/-4% QoQ). Maintain BUY: We like PEPL for the improvement in its scale of business and comfortable cash flows. With a strong launch pipeline in mid-income properties, this strength should continue over H2FY15. Maintain BUY. "PEPL reported yet another good set of operational numbers, with Q2FY15 sales of 2.2msf/Rs 12.9bn (+21% YoY) and collections of Rs 8.1bn (+31% YoY) respectively. Having achieved 50%+ of its FY15 sales/collection/ launch/delivery targets in H1FY15, PEPL remains comfortably placed for the rest of the fiscal. An extensive launch pipeline (Hyderabad, Cochin, Bengaluru), a strong delivery schedule (10msf in four quarters) and steady growth in collections should help sustain stock performance. Maintain BUY,” says Religare Capital research report.

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