Prestige Estates shares see selling pressure on income tax search 

Shares of Prestige Estates slipped over 5% in the afternoon session on Wednesday after the real estate major said the Income Tax Department was conducting a search operation at its registered office and branch offices starting February 25, 2025.Prestige Estates shares fell 5.18% to Rs 1129.15 on Thursday against the previous close of Rs 1192.50 on BSE. Total 0.17 lakh shares of the firm changed hands amounting to a turnover of Rs 1.94 crore. Market cap of Prestige Estates fell to Rs 48,821 crore on BSE. Prestige Estates shares have a one-year beta of 1.4, indicating very high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 54.4, signaling it's trading neither in the overbought nor in the overbought zone.

"...we hereby inform that the Income Tax Department is conducting a search at the Registered Office and other branch offices of the Company from February 25, 2025. The company is fully cooperating with the authorities, providing them with all necessary information and support," said Prestige Estates Projects on February 25.

At this stage, the details of the investigation and any potential financial or operational impact remain uncertain, the company stated.

Prestige Estates Projects reported a 84.8% fall in consolidated net profit in the third quarter of the financial year. Net profit crashed to Rs 17.70 crore in the quarter December 2024 against Rs 116.30 crore in the same period last year The real estate developer's revenue fell 7.9% to Rs 1,654.50 crore in Q3 compared to Rs 1,795.80 crore a year ago. However, EBITDA climbed 7% to Rs 590.10 crore, while margins improved to 35.7% from 30.7%.

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