Prestige Estate Projects Q2 Results Review - Stronger FY25 Under Construction: ICICI Securities

ICICI Securities Report

Prestige Estates Projects Ltd. clocked tepid Q2 FY25 gross sales bookings worth Rs 40.3 billion (43% YoY dip) owing to just three new launches across 8.2 million square feet in Bengaluru and Mumbai during the quarter.

Although H1 FY25 sales bookings were weak overall, at Rs 70.5 billion, Prestige Estate maintains its FY25 guidance of launching 53.4 msf of residential projects with a total gross development value of Rs 521 billion.

Accordingly, it aspires to clock Rs 250–300 billion of gross sales bookings in FY25 with high-value Mumbai projects (Rs 100 billion of launch GDV) and Indirapuram, NCR (Rs 100 billion launch GDV) being key projects beyond south India.

While incorporating recent QIP of Rs 50 billion and land bank additions, we retain Reduce with a revised target price of Rs 1,485 (earlier Rs 1,596) at a 50% premium to FY25E net asset value of Rs 990/share.

Key upside risks: Strong residential price uptick and pick up in office leasing.

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