Prestige Estates Projects: Target Price Set at Rs 1800 by Prabhudas Lilladher
Prestige Estates Projects Ltd Sees Strong Pre-Sales Growth in Q4FY26
Prestige Estates Projects Ltd (PEPL) has reported a significant increase in pre-sales growth year-over-year (YoY) to INR77bn, accompanied by a strong collection of INR 52.3bn, representing a 66% YoY growth in Q4FY26.
The company's pre-sales Compound Annual Growth Rate (CAGR) over FY23–26 has been a healthy 32%, driven by new launches, entry into new markets, and premiumization. This growth can be attributed to PEPL's robust launch pipeline, which spans approximately 58 million square feet (msf) with a potential Gross Development Value (GDV) of INR578.3bn across key markets including Bengaluru, Chennai, Mumbai, NCR, and Hyderabad.
Based on this strong performance, we expect PEPL's pre-sales to clock a CAGR of 15-20% over FY26–28E, supported by the healthy launch pipeline.
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Pre-Sales Growth Comparison
| Year | Pre-Sales Growth (YoY) | Collection (YoY) |
|---|---|---|
| FY26 | 11% | 66% |
| FY25 | - | - |
| FY24 | - | - |
| FY23 | - | - |
Given the strong Operating Cash Flow (OCF) generation and comfortable balance sheet position, we believe that PEPL is well-equipped to comfortably fund Business Development (BD) and capital expenditure (capex).
Recommendation
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Maintain 'BUY' rating and DCF-derived Net Asset Value (NAV) with a Structured Offering Price (SOTP)-based Target Price of Rs1,800/share.
Investor Takeaway
Investors should consider buying Prestige Estates Projects Ltd due to its strong pre-sales growth and healthy balance sheet.
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