Shares of Prestige Estates Projects Ltd have delivered multibagger returns in the last five years. The realty stock rose 535% during the period. However, the multibagger stock has seen correction in the short term falling 6% in the last two weeks and slipping 2% in three months. Prestige Estates stock has lost 13% from its all-time high of Rs 2,072.75 reached on June 24 this year.
The real estate stock has seen very high volatility in a year with a one-year beta of 1.3.
In the current session, Prestige Estates Projects stock was trading in the red. It slipped over 2% to Rs 1793 on BSE. Market cap of the firm fell to Rs 78,263 crore. Total 0.42 lakh shares of the firm changed hands amounting to a turnover of Rs 7.53 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 51.4, signaling it's trading neither in the overbought nor in the overtrading zone.
Prestige Estates shares are trading higher than 50 day, 100 day, 150 day, 200 day but lower than the 5 day, 10 day, 20 day and 30 day moving averages.
The stock is among the top picks by Axis Securities. It has maintained a price target of Rs 2,195 for the realty stock.
"Prestige Estates is on track to incur a capex of Rs 10,000 Cr for its commercial annuity projects. These projects will start generating around Rs 3,300 Cr in cash flows by FY28. The upcoming commercial portfolio comprises 8 Mn sq. ft across 5 projects. For its retail annuity portfolio, the company plans to spend Rs 1,600 cr in capex, which will yield Rs 580 Cr in cash flows from FY28. In the hospitality segment, Prestige Estates will reach 4,454 keys with a Capex of Rs 1,900 Cr and anticipates healthy annual revenue of Rs 2,000 Cr. This strong set of annual cash flows will make the company resistant to future risks and help lower its cost of debt. The company aims to maintain a debt-to-equity ratio of 0.9, with the current level at 0.66, said the brokerage citing diversified business model, Execution Supremacy,Robust Order book, and strengthening annuity streams, said Axis Securities.
Antique Broking has assigned a price target of Rs 2,198 to the stock.
HDFC Securities Institutional Research has assigned a price target of Rs 2060 to the stock.
"For FY25, Prestige Estates expects annual presales to grow by 15% YoY to Rs 240-250 bn, supported by a robust launch pipeline of Rs 600 bn across 60 msf. This includes projects like Prestige Southern Star, Prestige Raintree Park, and Prestige Falcon City Luxe in Bengaluru; The Prestige City Indirapuram and Prestige Bougainvillea in NCR; and Prestige Forest Hills and Prestige Nautilus in Mumbai. Along with the substantial Rs 3,500 crore investment in its residential portfolio, Prestige Estates is well-positioned for strong future growth and financial stability across multiple sectors. We reiterate our BUY rating, with an unchanged SOTP-based target price of Rs 2,060/share," said HDFC Securities Institutional Research.
Prestige Estates is one of the leading real estate developers in the country with its head office in Bengaluru.