A real estate stock backed by the Government of Singapore experienced a 5% surge in trading on Tuesday following the announcement of a significant project approval. The company secured the Real Estate Regulatory Authority (RERA) approval for a new development project with an estimated Gross Development Value (GDV) of Rs.9,000 crore.
Price Movement
During Wednesday’s trading session, shares of Prestige Estates Projects Ltd reached an intra-day high of Rs.1,444.90 apiece, rising 4.7 percent from its previous closing price of Rs.1,380.00 apiece. The stock later retreated from high and closed at Rs.1,366.10 apiece. Over the past five years, the stock has delivered over 700 percent returns.
What Happened
Prestige Estates Projects Ltd has received approval from the Real Estate Regulatory Authority (RERA) and officially launched its residential project ‘The Prestige City – Indirapuram’ in the National Capital Region (NCR). This marks the company’s entry into the NCR residential market.
The first phase, which includes Oakwood and Mulberry towers, is now being marketed and has a combined Gross Development Value (GDV) of over Rs.9,000 crores, making it one of the largest real estate launches in the region. The upcoming second phase, named Mayflower, will take the total GDV of the project to around Rs.12,000 crores.
Management Commentary
Mr. Irfan Razack, Chairman and Managing Director of Prestige Group, commented on the development, “We are thrilled to make our debut in the vibrant NCR residential market with The Prestige City, Indirapuram. This project embodies the scale, ambition, and integrated lifestyle that Prestige stands for. It is only the beginning — we are deeply committed to expanding our presence in NCR, and The Prestige City – Indirapuram is the first of many more landmark developments we have planned for this dynamic market. ”
Business Segments and Network
Prestige Estates Projects Ltd operates a diversified real estate portfolio across key segments such as residential (including apartments, villas, row houses, and condominiums), commercial office spaces and IT parks, retail developments like malls and entertainment hubs, hospitality ventures including hotels and leisure spaces, as well as property management and interior design services.
Geographically, the company maintains a strong footprint in major Indian cities such as Bangalore, Chennai, Hyderabad, Kochi, Mumbai, Goa, Mysore, Mangalore, and Calicut. It also has an international presence with operations in Dubai.
Financial Performance
In Q3 FY25, Prestige Estates Projects Ltd posted a consolidated revenue of Rs.1,654 crores, down 7.91 percent from Rs.1,796 crores reported in Q3 FY24. However, net profit saw a sharp decline of 80.6 percent year-on-year, falling to Rs.32 crores from Rs.165 crores in the same quarter last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 8.83 percent and a Return on Equity (ROE) of 4.11 percent. Its Price-to-Earnings (P/E) ratio stands at 97.36, higher than the industry average of 72.18. Furthermore, the company maintains a current ratio of 1.67, a debt-to-equity ratio of 0.75, and an Earnings Per Share (EPS) of Rs.13.52.
Shareholding Pattern
As of March 2025, the shareholding structure of Prestige Estates Projects Ltd reveals that promoters maintain a controlling stake of 60.95 percent. Foreign Institutional Investors (FIIs) hold 17.08 percent, including a 1.88 percent stake by the Government of Singapore. Domestic Institutional Investors account for 19.23 percent, while Retail Investors hold the remaining 2.74 percent.
Written by – Siddesh S Raskar
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