Jefferies Maintains A “buy” Rating On Prestige Estates Stock. See The Share Price Target And Other Information.

February 2023: Recently, Prestige Estates had its analyst meeting and outlined its plans for FY26, which is why brokerages have been very upbeat about the company.

According to Jefferies’ analysis of the company’s analyst meeting, the residential component of the real estate company’s presales is anticipated to double in value from this point forward.

While international brokerage firm Jefferies maintained a positive perspective on the company, shares of real estate developer Prestige Estates jumped in early trade on Wednesday.

The company has predicted an eventual increase from the present market price of more than 30%. In the first hour of trading today, Prestige Estates shares rose to Rs 421.95.

Brokerages have expressed optimism about the stock because the firm recently had their analyst meeting and presented the vision for FY26.

According to Jefferies’ analysis of the company’s analyst meeting, the company’s presales for the residential segment alone are projected to double from this point forward.

Also, the business discusses lessening its reliance on the South Indian market. The Bengaluru region currently accounts for a sizable portion of the company’s revenue.

However, the business mentions that Rs 15,000 crore of its Rs 25,000 crore presales objective is anticipated to come from markets outside of Bengaluru.

Also, Prestige Estate is considering expanding its business in Hyderabad. It also intends to expand into the NCR, the Pune region, and the Mumbai area.

To hit its presales goal, the business plans to spend between Rs 2,500 and Rs 3,000 crore on the new product addition yearly.

Prestige Estates, a real estate developer, now has net debt of about Rs 4,200 crore, and analysts expect it to climb. Nevertheless, they anticipate that the debt-to-equity ratio will max out at 0.6 times, which is a good ratio for a real estate company.

Generally, brokerages like Jefferies and Motilal Oswal have expressed a favourable opinion.
In comparison to the same period in the previous year, the realtor’s consolidated net profit increased by 45% to Rs 127.80 crore in the third quarter of 2022.

In the quarter ended December 31, 2022, revenue from operations increased 74.5 percent year over year to Rs 2,317 crore.

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