Real Estate Stock Surge: Brokerage firm Motilal Oswal is bullish on real estate stock Prestige Estates Projects Ltd. The brokerage has reiterated its ‘Buy’ rating for it with a target price of Rs 2,295 per share.
Today, on Friday, December 5, shares of Prestige Estates Projects Limited were trading up by more than 2 percent. This target price given by brokerage Motilal shows an increase of 38 percent from its closing price on Thursday. The brokerage said Prestige Estates has built a well-diversified portfolio across residential, office, retail and hospitality.
There will be a huge jump in presales
The brokerage also said that incremental business development of Rs 33,100 crore in the first six months of FY26 along with a launch pipeline of Rs 77,000 crore is expected to drive strong presales growth at a CAGR of 40 per cent during 2025-28, taking presales to Rs 46,300 crore by FY28.
Let us tell you that presales in real estate means selling a property before its completion. This is called buyer booking, which helps the builder get funding and makes it easier to complete the project.
Why is brokerage hopeful about shares?
While expanding its hospitality business, Prestige is also expanding its office and retail footprint by 50 msf. Motilal Oswal estimates that by the financial year 2028, office and retail rental income will increase by 53 percent CAGR to Rs 2,510 crore and hospitality revenue will increase by 22 percent CAGR to Rs 1,600 crore.
As under-construction commercial assets become operational, total commercial income is expected to increase to Rs 3,300 crore by FY30. The brokerage further said that Prestige has rapidly gained market share in MMR, made a strong entry in NCR, and is also growing rapidly in Pune, creating additional revenue generation options. Given its rapid growth in the residential, commercial and hospitality segments, Motilal Oswal believes the stock is well positioned for further re-rating.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
Also read:
On the other hand, RBI reduced the repo rate, on the other hand shares of real estate companies rose; Why is there so much enthusiasm?
