Prestige Estates Projects Ltd stock rose 1.8% to hit a 52-week high of Rs 290.65 on Wednesday after the company posted strong set of numbers for the fourth quarter (Q4). Prestige Estates Projects posted 30% year-on-year growth in its net profit at Rs 139.1 crore for the March quarter. Revenue during the quarter grew 7% to Rs 1,979.3 crore.
At operating level, the real estate company’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased 31% to Rs 487.9 crore in the March quarter, as margins expanded 448 basis points compared with a year ago.
After the Q4 earnings, global brokerage houses retained their bullish stance on the stock, while raising targets for the stock price.
Morgan Stanley maintained its ‘overweight’ call on the stock and raised its price target to Rs 347 from Rs 320. It said Prestige is a strong real estate brand in South India with steady growth visibility. Prestige Estates is evolving into a quality rental play and its exit rentals should rise to Rs 960 crore by FY20, added Morgan Stanley.
CLSA also had a ‘buy’ rating on the stock with a target price of Rs 345 per share. It said Prestige's March quarter was strong both operationally and financially as pre-sales surged to an 18 quarter high and profits more than doubled when compared with the previous quarter. It added that the company’s pre-sales could rise 30% and lease income could grow 20% in FY20 if the upper end of the management guidance gets hit
The Prestige Estate Projects stock has been one of the biggest gainers among midcap stocks in the last three months, rising nearly 40%. At 3pm, the stock was trading at Rs 291.15, up 2%, on BSE.
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