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    Buy Prestige Estates Projects, target price Rs 675: Motilal Oswal Financial Services

    Synopsis

    Prestige Estates Projects, incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 16407.27 Crore) operating in Real Estate sector.

    Prestige Estates Projects | CMP: Rs 406Agencies
    The brokerage reiterates BUY with an unchanged SOTP-based TP of Rs 675, implying 63% upside potential.
    Motilal Oswal Financial Services has buy call on Prestige Estates Projects with a target price of Rs 675. The current market price of Prestige Estates Projects is Rs 407.

    Prestige Estates Projects, incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 16407.27 Crore) operating in Real Estate sector.

    Prestige Estates Projects key Products/Revenue Segments include Income from Sale of Commercial Flats, Shops & Plots, Property Development, Sale of services, Other Services, Project Management Fees and Other Operating Revenue for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2347.50 Crore, up 59.18 % from last quarter Total Income of Rs 1474.70 Crore and up 68.16 % from last year same quarter Total Income of Rs 1396.00 Crore. Company has reported net profit after tax of Rs 163.60 Crore in latest quarter.

    The company’s top management includes Mr.Irfan Razack, Mr.Rezwan Razack, Mr.Noaman Razack, Mr.Uzma Irfan, Mr.Noor Ahmed Jaffer, Dr.Pangal Ranganath Nayak, Mr.Biji George Koshy, Mr.Jagdeesh K Reddy, Ms.Neelam Chhiber. Company has S R Batliboi & Associates LLP as its auditors. As on 31-12-2022, the company has a total of 40 Crore shares outstanding.

    Investment Rationale
    As the company's residential segment further scales up, the cash flow generation will be sufficient to take care of business development spending and commercial capex requirements without straining the balance sheet, which is a key investor concern. Furthermore, once the commercial portfolio fully stabilizes over the next five to six years, it will generate rental income of INR 32b, which is right now not fully implied into the current valuation.

    Promoter/FII Holdings
    Promoters held 65.48 per cent stake in the company as of 31-Dec-2022, while FIIs owned 22.21 per cent, DIIs 9.41 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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