Axis Securities sees over 30% upside potential in this real estate stock, initiates coverage
Axis Securities has initiated coverage on Prestige Estates with a target price of Rs 2,195 supported by the company’s diversified business model, execution supremacy, robust order book and strengthening annuity streams.
The real estate business is highly cyclical and susceptible to various geographical risks. Prestige Group has mitigated these risks by diversifying across verticals and geographies and is better positioned to emerge strong during challenging times.
Prestige has recorded its best-ever pre-sales of Rs 21,000 crore and the highest-ever collections of Rs 11,950 crore in FY24. The company has delivered 25 million sq. ft in FY24 with over 300 projects completed. In Q1FY25, it achieved a revenue of Rs 2,924 crore with a PAT of Rs 307 crore.
“Currently, Prestige Estates Projects Ltd (PEPL) has a residential portfolio with 127 Mn sq. ft completed across 150 projects. Its ongoing portfolio consists of 66 Mn sq. ft distributed across 39 projects. These ongoing and completed projects are set to yield ~Rs 12,350 Cr in free cash flow,” said the report by Axis Securities.
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The total upcoming projects have 73 million sq. ft deliverable, which is almost 65% of completed projects. Axis Securities believes that this upcoming portfolio is set to yield Rs 27,340 crore in free cash flow and the company’s projected launch for FY25 stands at Rs 59,000 crore in revenues. This showcases Prestige’s vision to scale and
