A prominent real estate stock backed by the Government of Singapore surged 5 percent in Tuesday’s trade after global brokerage CLSA projected a potential upside of 74 percent. The rally followed news of a major regulatory approval for a key project, boosting investor sentiment and sparking renewed interest in the counter.
Price Movement
During Tuesday’s trading session, shares of Prestige Estates Projects Ltd reached an intra-day high of Rs.1,385.00 apiece, rising 5.2 percent from its previous closing price of Rs.1,315.80 apiece. The stock later retreated from high and closed at Rs.1,375.50 apiece. Over the past five years, the stock has delivered over 690 percent returns.
Brokerage Overview
Shares of Prestige Estates Projects Ltd. rose on Tuesday, April 29, after global brokerage CLSA projected a nearly 74 percent upside from the stock’s last closing price. CLSA maintained its “outperform” rating with a revised price target of Rs.2,380 per share. The rally was driven by news that Prestige Estates secured long-awaited RERA approval for its key Indirapuram project in the NCR, its largest in the region outside Gurugram, with an estimated sales potential of over Rs.10,000 crore.
The approval, initially expected in Q3 FY25, was delayed and cited as a major reason the company missed its pre-sales target for the year. Prestige reported pre-sales of Rs.17,000 crore, falling short of its earlier Rs.25,000 crore guidance.
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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