Prestige Estates share price gains as CLSA retains buy, raises target to Rs 360

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Prestige Estates Projects share price gained over 2 percent in the morning trade on March 12 after CLSA maintained buy call on the stock.

The global research firm has retained buy on the stock and has raised target price to Rs 360 from Rs 340 per share. The firm feels that re-rating is likely on the back of stronger balance sheet. It is of the view that estimated net debt is likely to decline to Rs 1,900 crore from Rs 8,500 crore, reported CNBC-TV18 quoting the brokerage.

CLSA has, however, cut FY21-23 earnings estimates due to a decline in rental income.

Prestige Estates Projects concluded phase 1 of the proposed transaction with US private equity major Blackstone Group worth Rs 74,670 million, the real estate developer said on March 10.

Also Read: Prestige Estates concludes Rs 74,670-mn deal with Blackstone

The enterprise value forming part of phase 1 is approximately Rs 74,670 million out of the total enterprise value of approximately Rs 91,600 million as mentioned in the initial disclosure, the company said.

The company plans to use net proceeds for capex and new project acquisitions.

The company has been graded CRISIL DA1 by CRISIL and also enjoys credit rating of ICRA A+.

The stock was trading at Rs 299.35, up Rs 8.60, or 2.96 percent at 09:22 hours. It has so far touched an intraday high of Rs 302.50 and an intraday low of Rs 298.05.