Shares of Prestige Estates Ltd have delivered multibagger returns in the last three years. The real estate stock, which closed at Rs 282.25 on June 18, 2021 hit a high of Rs 1958.20 in the current session, clocking 593% gains during the period. In comparison, the BSE 500 index rose 65.12in three years. Prestige Estates shares hit a record high of Rs 1,999.95 on June 18, 2024 and fell to a 52-week low of Rs 521 on July 13, 2023.
Prestige Estates stock rose nearly 5% to Rs 1958.20 today against the previous close of Rs 1867.20 on BSE. Total 0.20 lakh shares of the firm changed hands amounting to a turnover of Rs 3.78 crore. Market cap of Prestige Estates rose to Rs 78,242 crore on BSE. Prestige Estates shares have a one-year beta of 1.2, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 62.8, signaling it's trading neither in the overbought nor in the oversold zone.
Prestige Estates stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
International brokerage CLSA has reiterated its 'Buy' rating on the stock and raised price target to Rs 2,320.
Prestige Estates' valuations remain discounted compared to peers and the brokerage expects a continued re-rating as debt concerns appeared overblown. It said,"Operational cash flow will significantly support its capex and project pipeline growth."
Elara Securities has a buy rating on the real estate stock with a price target of Rs 2300 per share.
"Prestige Estates Projects is guiding a presales growth of 25 percent YoY in FY25, led by planned launches of Rs 60,000 crore. This is supported by its dominant position in the home market of Bengaluru, consistently commanding 10 percent volume market share. We view the company's proven ability to access land via joint development agreements (JDAs) and industry-leading execution pace as key catalysts for accelerating new business development in the residential business," said Elara Securities.
Prestige Estates reported a 70 per cent fall in consolidated net profit at Rs 140 crore for the quarter ended March 2024 on lower income. Its net profit stood at Rs 468.4 crore in the year-ago period.
Total income slipped to Rs 2,232.5 crore in Q4 of the last fiscal from Rs 2,938 crore in January-March FY23. During 2023-24 fiscal year, net profit rose to Rs 1,374.1 crore from Rs 941.8 crore in the preceding year. Total income increased to Rs 9,425.3 crore in the last fiscal from Rs 8,772 crore in 2022-23.
Prestige Estates is one of the leading real estate developers in the country.