Synopsis: Prestige Estate Projects is in focus after Motilal Oswal expects a strong 37% upside, citing multiple positives about the company.
The shares of this leading real estate developer are in focus after Motilal Oswal expects the stock to rise by a staggering 37 percent, stating strong presale figures, a strong launch pipeline, and a manageable debt level. In this article, we will dive more into the details behind the uptick of this rationale.
With a market capitalisation of Rs 72,252 crore, the shares of Prestige Estates Projects Ltd were trading at Rs 1,678 per share, down 0.68 percent from its previous day’s closing price of Rs 1,688.85 per share. Over the past five years, the stock has delivered a robust return of 538 percent, outperforming NIFTY 50’s return of 102 percent.
Analyst Comments
Leading domestic brokerage house, Motilal Oswal, has given a Buy call on Prestige Estate Projects Ltd and has fixed a target price of Rs 2,295 per share, signalling an upside potential of 37 percent from its current market price.
The brokerage cited that Prestige Estates achieved record performance in the first half of FY26, a significant factor in the success was outstanding launches and exceptional presales. It generated presales worth Rs 18,100 crore in H1 FY26, with a 157 percent YoY growth and has already exceeded the sales volume of the entire FY25. It launched nearly 19 million sq. ft. of new projects across major cities, which was the primary driver for the increase in presales. Collections also showed good growth by 55 percent YoY in H1 and thus pointed to strong customer demand and steady cash inflows.
Besides sales momentum, Prestige also increased its land bank by purchasing 266 acres with a future development value of Rs 33,100 crore across major cities like Bengaluru, Chennai, Hyderabad, Mysore and Mumbai. Besides, it has a huge upcoming launch pipeline worth Rs 27,200 crore lined up for the rest of FY26, thus ensuring continued growth visibility. Also, the commercial business (office and retail) was in good shape, retail malls saw 9 percent more turnover, and occupancy in both the segments was around 93–99 percent, thus pointing at stable rental income.
The company’s financial performance was equally outstanding, whereby revenue grew 14 percent YoY to Rs 4,740 crore in H1, EBITDA increased by 26 percent YoY, and profit was up by 70 percent YoY to Rs 720 crore with a margin of 15 percent. Though there was an increase in net debt, leverage is still at a comfortable level, and borrowing costs have decreased.
Thus, Prestige Estates may realize the anticipated 37 percent target if it maintains the pattern of strong presales, steady collections, and successful new launches as in the first half of the FY26. The company is well-positioned for growth with a long launch pipeline, an increasing land bank, and good performance across the residential, office, and retail segments. However, continuing this flow will be influenced by customer demand, the punctuality of the project, and the maintenance of financial discipline.
Prestige Estates is a top-tier real estate developer in India and is widely recognized for constructing large residential townships, commercial office spaces, malls, hotels, and mixed-use projects in major cities. With a solid record of delivering quality projects, the company is deeply rooted in markets like Bengaluru, NCR, Mumbai, Hyderabad, and Chennai. Prestige is still actively expanding through new launches, land acquisitions, and a large development pipeline.
Besides residential projects, Prestige is also involved in the operation of malls and office spaces that generate rental income of a stable nature. The company has a huge development pipeline, strong brand recall, and an ever-growing portfolio of residential, retail, office, and hospitality projects. With demand remaining consistent, finances being in good shape, and several new launches around the corner, Prestige Estates is gearing up to become one of the real estate players with the fastest growth in the country.
Written by Satyajeet Mukherjee
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