Prestige Estates Hits Record High on Stellar Quarterly Performance

Prestige Estates Hits Record High on Stellar Quarterly Performance

VoM News Desk | November 9, 2023 | 02:54 PM IST | Breaking News | Follow on Google News

Prestige Estates Hits Record High on Stellar Quarterly Performance

Prestige Estates Hits Record High on Stellar Quarterly Performance

Prestige Estates Projects witnessed a notable surge in their share price, climbing 11% over two sessions to hit an all-time high. This impressive rally was fueled by the company’s announcement of its highest-ever quarterly sales. During the September quarter, the firm achieved sales totaling ₹7,092 crore, corresponding to 3,659 units sold.

Stock Soars Beyond Expectations

In just today’s trading, shares leaped by 5.4%, reaching a peak of ₹877.50. This momentum builds on an 11% increase over the past two days, including a 5.3% hike on November 8. The stock’s performance has been exceptional, skyrocketing over 124% from its 52-week low in February and posting gains of 89% year-to-date and 79% over the past year.

Financial Growth Outshines Previous Year

The real estate giant’s financial health has significantly strengthened, with its consolidated net profit for Q2FY24 soaring to ₹910 crore, a substantial increase from ₹140.7 crore in the same quarter last year. Total income also saw a remarkable rise, surging by 121% to ₹3,256 crore in the quarter, compared to last year’s ₹1,474.7 crore. Even the company’s EBITDA margin edged higher by 70 basis points to 26.6%.

First Half of FY24 Marked by Major Profits and Acquisitions

The first six months of FY24 have been exceptional for Prestige Estates, with net profits amplifying by over 223% to ₹1,117.8 crore from the previous year. The company’s total income for this period jumped by 50%, reaching ₹5,222.3 crore. Additionally, the firm expanded its land holdings by acquiring 24 acres in Hyderabad, which boasts a development potential of 8 million square feet and an expected sales potential of ₹6,500 crore.

Brokerage Optimism Reflects Strong Future Outlook

In light of these robust results, Motilal Oswal has maintained a ‘buy’ rating on Prestige Estates, setting a target price of ₹1,000. This target suggests a 14% potential upside, despite the stock’s recent rally. The brokerage firm remains bullish on the company’s sales trajectory and the cash flow from its residential segment, expecting these factors to mitigate any leverage concerns moving forward.

VoM News Desk

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