Prestige Estates Projects Ltd witnessed a notable rise of 2% in its stock price on Tuesday after the real estate major reported record-breaking financial results for the first quarter of FY25. Market analysts and brokerages remain optimistic on the company’s trajectory, projecting continued robust growth due to strong sales bookings, new launches, and a healthy pipeline.
The stock opened on a positive note on the NSE, surging from its previous close, and traded with strength throughout the morning session. The gains came following impressive operational metrics and a confident management commentary, adding to investor enthusiasm in an otherwise range-bound broader market.
Strong Q1 performance drives confidence
Prestige Estates reported a record pre-sales figure of ₹7,092 crore in Q1 FY25, marking a 111% year-on-year growth. The company achieved its highest-ever quarterly sales volume of 6.06 million sq ft, underscoring its leadership position in the South Indian market and expanding footprint in Mumbai and NCR.
The collections for the quarter stood at ₹4,480 crore, showcasing solid cash flow management and execution capability. The management highlighted that strong demand trends, timely construction milestones, and planned strategic launches in the coming quarters will drive further growth momentum.
Brokerage views remain positive
Leading brokerages including Motilal Oswal, Kotak Institutional Equities, and JM Financial retained their positive outlook on Prestige Estates following the Q1 performance update. Analysts appreciated the company’s strong operational execution, robust pre-sales, and high-value launches across major cities.
A summary of brokerage recommendations:
| Brokerage | Rating | Target Price (₹) | Key Highlights |
|---|---|---|---|
| Motilal Oswal | Buy | 1,540 | Robust pre-sales growth, strong launch pipeline |
| Kotak Institutional | Add | 1,480 | Consistent execution, strong brand equity |
| JM Financial | Buy | 1,560 | Record Q1 pre-sales and collections, positive outlook |
Most analysts believe that Prestige Estates’ rapid expansion into Mumbai and NCR will add to its revenue and profit growth, while healthy cash flows will support further investments in upcoming projects.
Management’s commentary fuels bullishness
The management reiterated confidence in crossing its FY25 sales guidance of ₹25,000 crore backed by multiple planned launches across Bengaluru, Hyderabad, Mumbai, and NCR. Chairman and Managing Director Irfan Razack highlighted that the record-breaking Q1 was a testament to Prestige Group’s brand strength, customer trust, and strategic expansion.
Razack said, “The Indian real estate sector is witnessing a structural upcycle and Prestige is strongly positioned to leverage this demand with differentiated offerings and execution reliability. We aim to launch over 20 million sq ft this financial year, diversifying into key metros with flagship projects.”
Expansion plans and upcoming launches
Prestige Estates plans to launch projects worth ₹18,000 crore in H1 FY25 alone, with major launches lined up in Mumbai’s Mahalaxmi and Bandra, Hyderabad’s Kokapet, Bengaluru’s Whitefield, and NCR’s Noida. Analysts believe these launches will enhance the company’s sales trajectory significantly.
| City | Upcoming Launches (H1 FY25) | Estimated Sale Value (₹ Cr) |
|---|---|---|
| Mumbai | 2 projects | 9,200 |
| Bengaluru | 4 projects | 3,800 |
| Hyderabad | 2 projects | 3,500 |
| NCR (Noida) | 1 project | 1,500 |
| Total | 9 projects | 18,000 |
The company’s focus remains on premium residential, luxury housing, and large township projects catering to the rising aspirational middle class and HNI segments across top metros.
Debt position and financial strength
Prestige Estates has also reduced its net debt to equity ratio to 0.5x from 0.8x last year, indicating robust financial discipline and efficient capital allocation. The management highlighted plans to maintain net debt below ₹6,000 crore even after aggressive expansion, ensuring a comfortable leverage position for future growth.
Market and sector outlook
India’s real estate sector is witnessing sustained demand in residential, luxury, and township projects driven by rising income levels, urban migration, and aspirational upgrades. Prestige Estates remains among the top developers positioned to capture this cycle with its brand equity, execution track record, and pan-India pipeline.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Please consult your SEBI-registered financial advisor before making any investment decisions.
