Buy Prestige Estate;target of Rs 218: Axis Securities

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26 Aug, 2025 12:21

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Axis Securities's research report on Prestige EstateAmidst weak demand and thereby no major new launches, Prestige Estates Projects Ltd (PEPL) reported muted sales of 0.9 msf totaling ~Rs 5.1 bnin Q3 (down 32% YoY and 15% QoQ).Having achieved mere 33% of its full year sales guidance in 9MFY16, the management lowered its guidance to Rs 30 bn (vs.Rs 57.5 bn earlier).Nevertheless, PEPL is on track to achieve its original collection guidance (78% achieved) and exit rentals (already achieved). Consolidated net debt increased by Rs 13.5 bn to Rs 49.7 bn – highest ever (net D/E of 1.1x vs. 0.8x in Q2), driven by acquisition (Rs 6 bn) and consolidation (Rs 5 bn) of Exora Business Park.With Rs 32bn of net cash flows from near ready inventory, management expects debt to peak out (max D:E of 1-1.25x) and decrease post few quarters.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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