Prestige Estates shares gain as Q2 net profit tanks 77% 

Shares of Prestige Estates gained in early deals today after the real estate firm reported its Q2 earnings. The firm reported a 77.4% year-on-year (YoY) fall in September quarter net profit to Rs 192.2 crore. Profit slipped on a Rs 106-crore deferred tax impact linked to recent changes in the tax code, including the removal of indexation benefits on capital gains.

Prestige Estates shares rose 2.58% to Rs 1648.10 on Wednesday against the previous close of Rs 1606.50 on BSE. Total 0.16 lakh shares of the firm changed hands amounting to a turnover of Rs 2.51 crore. Market cap of Prestige Estates rose to Rs 71,352 crore on BSE. 

Revenue climbed 3% to Rs 2,304.4 crore in Q2 from Rs 2,236.4 crore in the corresponding quarter last year, highlighting consistent top-line growth despite broader headwinds.

Operating profit rose 6.5% to Rs 631.3 crore in Q2 compared to Rs 592.5 crore a year ago. EBITDA margin rose marginally to 27.4% against 26.5% last year.

Nuvama has a price target of Rs 2,175 for the realty sector stock.  It has maintained a buy call. 

"Strong housing demand and a robust launch pipeline across geographies in H2FY25 are likely to boost PEPL’s sales trajectory going ahead. Improvement in office demand and Prestige Estates' strengthened balance sheet post-QIP underpin our bullish stance on the company. Retain ‘BUY’ with a revised price target of Rs 2,175 (Rs 2,136 earlier) at a 40% premium to NAV amidst a valuation rollover to Q2FY27E," said Nuvama 

Prestige Estates shares have a one-year beta of 0.9, indicating low volatility during the period. In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 44.5, signaling it's trading neither in the overbought nor in the overtrading zone. 

Prestige Estates is one of the leading real estate developers in the country.