Prestige Estates Projects Recommended by Geojit Financial Services with Target Price of Rs 1623

Prestige Estates Projects Ltd. (PEPL)

Key Highlights

• PEPL is a leading real estate developer in India, with a diverse portfolio covering residential, office, retail, and hospitality segments.
• In 9MFY26, pre-sales surged 122% YoY, surpassing the previous full-year peak, driven primarily by a strong 40% contribution from the NCR region.

Financial Performance

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• Quarterly sales volumes stood at 2.9 msf, with over 8,500 units sold year-to-date, alongside a 6% increase in average realizations.
• Leasing during Q3 stood at 0.56 msf, while portfolio occupancy remained robust at over 95%.
• Revenue for Q3 grew 128% YoY, driven by strong project completions.
• EBITDA margin for the quarter stood at 22.5% (vs. 34.3% for 9M), with Q3 compression attributable to product mix.

Guidance and Outlook

• Management has raised its FY26 pre-sales guidance to over Rs.30,000cr, having already achieved Rs.22,327cr in the first nine months.
• Despite near-term challenges, current valuations appear reasonable, warranting an upgrade in our rating to Buy.
• A revised target price of Rs.1,623 is based on FY28E NAV.