Buy Prestige Estates Projects, target price Rs 611: Geojit

Geojit has buy call on Prestige Estates Projects with a target price of Rs 611. The current market price of Prestige Estates Projects is Rs 489.

Time period given by analyst is one year when Prestige Estates Projects Ltd. price can reach defined target.

Prestige Estates Projects Ltd., incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 19722.39 Crore) operating in Real Estate sector.

Prestige Estates Projects Ltd. key Products/Revenue Segments include Income from Sale of Commercial Flats, Shops & Plots, Property Development, Other Services, Project Management Fees, Other Operating Revenue and Sale of services for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2011.80 Crore, down -19.19 % from last quarter Total Income of Rs 2489.60 Crore and up 36.54 % from last year same quarter Total Income of Rs 1473.40 Crore. Company reported net profit after tax of Rs 253.60 Crore in latest quarter.

Investment Rationale
The brokerage has a positive view on PEPL on the back of strong projects under pipeline(46 msf), strong pre-sales momentum and a healthy balance sheet (debt-to-equity of 0.40). Hence, it assigns BUY rating on the stock with a target price of Rs. 611 based on 2.3x FY24E adj. book value.

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