Buy Prestige Estates Projects, target price Rs 510 : ICICI Direct

ICICI Direct has buy call on Prestige Estates Projects with a target price of Rs 510. The current market price of the company is Rs 483. Time period given by analyst is 14 days when its price can reach defined target.
Prestige Estates Projects, incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 19369.64 Crore) operating in real estate sector.

Its key products/revenue segments include income from sale of commercial flats, shops and plots, property development, other services, project management fees, other operating revenue and sale of services for the year ended March 31, 2021.


Financials
For the quarter ended June 30, 2022, the company has reported a consolidated total income of Rs 2011.80 crore, down 19.19 per cent from last quarter total income of Rs 2489.60 crore and up 36.54 per cent from last year same quarter total income of Rs 1473.40 crore. Company has reported net profit after tax of Rs 253.60 crore in latest quarter.

The company’s top management includes Mr.Irfan Razack, Mr.Rezwan Razack, Mr.Noaman Razack, Mr.Jagdeesh K Reddy, Mr.Biji George Koshy, Mr.Noor Ahmed Jaffer, Dr.Pangal Ranganath Nayak, Mr.Uzma Irfan, Ms.Neelam Chhiber. Company has S R Batliboi & Associates LLP as its auditors. As on June 30, 2022, the company has a total of 40 crore shares outstanding.

Investment Rationale
The share price of Prestige Estates is at the cusp of generating a breakout above the triangular consolidation of the last one month thus offers fresh entry opportunity.

The base of the recent consolidation is placed at the 50days EMA (currently placed at Rs 442) signaling strength and an overall positive bias.

Among the oscillators the daily MACD is rebounding taking support at its nine periods average thus validates positive bias.

Promoter/FII Holdings
Promoters held 65.48 per cent stake in the company as of June 30, 2022, while FIIs owned 23.73 per cent, DIIs 7.59 per cent.