Reduce Prestige Estate Projects; target of Rs 1485: ICICI Securities

ICICI Securities research report on Prestige Estate Projects

Prestige Estates Projects (PEPL) clocked tepid Q2FY25 gross sales bookings worth INR 40.3bn (43% YoY dip) owing to just three new launches across 8.2msf in Bengaluru and Mumbai during the quarter. Although H1FY25 sales bookings were weak overall, at INR 70.5bn, PEPL maintains its FY25 guidance of launching 53.4msf of residential projects with a total GDV of INR 521bn. Accordingly, it aspires to clock INR 250–300bn of gross sales bookings in FY25 with high-value Mumbai projects (INR 100bn of launch GDV) and Indirapuram, NCR (INR 100bn launch GDV) being key projects beyond south India.

Outlook

While incorporating recent QIP of INR 50bn and land bank additions, we retain REDUCE with a revised TP of INR 1,485 (earlier INR 1,596) at a 50% premium to FY25E NAV of INR 990/share. Key upside risks: Strong residential price uptick and pick up in office leasing.

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