Buy Prestige Estates, target price Rs 1,914: HDFC Securities

HDFC Securities has a buy call on Prestige Estates Projects Ltd. with a target price of Rs 1914. The current market price of Prestige Estates Projects is Rs 1202.0 . Prestige Estates Projects Ltd., incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 51836.23 Crore) operating in Real Estate sector.

Prestige Estates Projects' key products/revenue segments include Income from Sale of Commercial Flats, Shops & Plots, Property Development, Other Services, Sale of services, Project Management Fees and Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 1697.90 crore, down -29.95% from last quarter Total Income of Rs 2423.80 crore and down -13.83% from last year same quarter Total Income of Rs 1970.50 crore. The company has reported net profit after tax of Rs 39.20 crore in the latest quarter.

The company?s top management includes Mr.Irfan Razack, Mr.Zackria Hashim, Mr.Mohamed Zaid Sadiq, Mr.Faiz Rezwan, Mr.Zayd Noaman, Ms.Sana Rezwan, Mr.Nayeem Noo, Mr.T Arvind Pai, Mr.Swaroop Anish, Mr.V Gopal, Mr.Suresh Singaravelu, Ms.Anjum Jung, Mr.Nawabzada Omer Bin Jung, Dr.Rezwan Razack, Mr.Noaman Razack, Mrs.Uzma Irfan, Mr.Noor Ahmed Jaffer, Dr.Pangal Ranganath Nayak, Mr.Biji George Koshy, Mr.Jagdeesh K Reddy, Ms.Neelam Chhiber, Mr.S N Nagendra, Dr.Ravindra Munishwar Mehta, Lt. Col.Milan Khurana. Company has S R Batliboi & Associates LLP as its auditors. As on 31-12-2024, the company has a total of 43 Crore shares outstanding.

Investment Rationale
Prestige Estates Project has a well-diversified model with strong mix of annuity and residential asset class and Pan India presence. The company's moat lies in acquiring land at low cost and this helps to re-calibrate or offer better pricing to achieve sales velocity and better IRR?s. HDFC Securities remains constructive with a BUY rating and SOTP based target price of Rs 1,914/share (adjusted for fundraise shares dilution).

Promoter/FII Holdings
Promoters held 60.94 per cent stake in the company as of 31-Dec-2024, while FIIs owned 19.3 per cent, DIIs 16.68 per cent.