Prestige Estates Project: A Real Estate Gem Shining Brighter Than Ever

Prestige Real Estate Project : With a market capitalization of ₹53,659 Cr, Prestige Estates Projects is gaining prominence for its innovation and strategic expansion. Over the past 30 years, Prestige has transformed from a local construction company into a national giant, leaving its mark on the cityscape.

Shares of Prestige Estates Projects rose 11% in just two days after the company released its quarterly results. The current market price of the stock is Rs 1,321.25. Prestige Estate Projects Limited stock has recorded an outstanding return of 190.82% in just one year. The company has presence in several cities in India and holds a leading position in Bengaluru.

This article takes a closer look at the nitty-gritty of Prestige Estates Projects and explores its business overview, sector analysis, growth trajectory, financial health, and promising future within the ever-evolving real estate symphony.

Prestige Real Estate Project

business overview

Founded by Razack Sattar in 1986 and beginning its journey in South India, Prestige Estates Projects has evolved into a diversified real estate giant. Our diverse portfolio includes:

Residential: Luxury apartments, villas and townships for discerning homebuyers.

advertisement: These are office spaces, IT parks, shopping malls, etc. for the purpose of fostering venture companies.

Sleeve: An upscale shopping destination offering curated experiences for the discerning shopper.

hospitality: “The Residence” brand’s 5-star hotels and resorts offer luxurious relaxation.

Asset Management Services:The company offers a variety of comprehensive services such as facilities, housekeeping, security, owner/tenant experience and other property management-related services.

With over 288 completed projects covering 172 million sq ft of developable area and 56 ongoing projects covering 86 million sq ft, Prestige boasts a strong presence across India. The geographical scope extends to 13 cities, including metropolitan cities such as Bangalore, Chennai, Hyderabad and Mumbai and promising tier 2 cities such as Mangalore, Goa, Kochi, Calicut and Ooty.

Let us understand the revenue contribution of various segments of the Prestige Estates project to get a clear picture of their contribution to the company’s total revenue.

Prestige Real Estate Project – business sector

The Prestige Estates project is comprised of various sectors: It’s a symphony of revenue streams, with each segment playing a distinct and essential role in your overall financial success. To understand the company’s multifaceted strengths, it is important to understand the contribution of each segment.

Looking at the data above, we can see that the majority of Prestige Estates project revenue comes from residential building construction.

The company’s lodging segment is an increasing contributor to revenue. Demand is increasing due to festivals, wedding season, increased overseas inbound travel, and increased MICE (Meetings, Incentives, Conferences, Exhibitions) activities.

Possible reasons for Prestige Estates project growth

The Indian real estate sector is on the rise, driven by urbanization, rising disposable income and government initiatives. This wave of growth has brought the following benefits to Prestige Estates Projects:

• Increased demand: Growing demand for both residential and commercial space, especially in major metropolitan areas, has benefited Prestige’s diverse portfolio. As of the second quarter of fiscal 2024, Prestige currently has 24 projects scheduled for residential and 11 projects scheduled for commercial.
• Positive Industry Outlook: The expected continued growth in the Indian real estate sector bodes well for Prestige’s prospects. The Securities and Exchange Board of India (SEBI), through a consultation document, explored the idea of ​​regulating fractional ownership of real estate assets, a step that could potentially lead to the introduction of a similar framework for real estate investment trusts (REITs). Seeking ownership of key assets.

Additionally, the National Stock Exchange (NSE) has taken a commendable step by including REITs and Infrastructure Investment Trusts (InvITs) in its leading indices such as NIFTY 500, NIFTY Midcap 150 and NIFTY Smallcap 25. This measure encourages the participation of small investors. It adds to the story of India’s real estate boom.

• technology adoption: Improved efficiency and competitiveness by embracing Prop-Tech advancements for project management, sales, and customer engagement.
• Strong financial performance: By consistently exceeding market expectations and delivering strong financial results, we have instilled confidence in investors with revenue exceeding Rs 8300 crore in FY23 and a consistent track record of profitability.

These factors have combined to create a positive outlook for Prestige, leading to an increase in the price of the company’s stock.

Prestige Real Estate Project – Finance

In FY23, the company recorded revenue of Rs 8,772 crores, up 33% year-on-year. The company’s net profit was Rs 1,066.8 crores. EBITDA increased by 45.81% compared to the same period last year due to improved productivity and improved asset management.

The company’s ROCE decreased by 19% from 12.01% in FY22 to 9.74% in FY23. Due to the increased recognition of exceptional items in the previous year, ROE also decreased and return on equity increased. FY23 ROE was 5.22% compared to 16.01% in FY22.

Prestige Estates Projects’ stock price has also been trending upward over the past few years. It was as low as Rs 139.40 in May 2020, i.e. during the Corona era, but has now reached Rs 1324. The stock has returned a whopping 849.78% over the past five years.

future prospects

The future of Prestige Estates Projects appears bright due to several factors:

The company is planning an ambitious portfolio expansion. With more than 43 projects totaling 85 million square feet currently in the pipeline, Prestige Estates Projects is poised to achieve meaningful, sustained growth. This geographical coverage, which extends across major metros and promising Tier-II cities, highlights Prestige’s vision for national prominence.

Prestige’s unwavering commitment to quality, innovation and strategic expansion, combined with its strong financial foundation, positions the company for continued success and growth. The company recently launched ‘Prestige Park Grove’ which contributed revenue of ₹4600+ Cr in Q2 FY24.

Prestige has acquired 24 acres of land in Hyderabad with a development potential of 8 million sq ft and a sales potential of ₹6500 Cr. Beyond simple construction, Prestige Estates Projects recognizes the importance of sustainability. The focus on embracing green technologies and adopting eco-friendly practices is perfectly aligned with modern market trends and societal expectations.

Sustainable building methods, energy-efficient systems, and a commitment to environmental conservation resonate with both discerning investors and environmentally conscious homebuyers, strengthening the company’s brand image and positioning it as a leader in responsible development. It is a solidifying factor.

conclusion

In conclusion, Prestige Estates Projects has orchestrated a symphony of success and has emerged as a stalwart in the Indian real estate landscape. Building on its rich heritage since its founding in 1986, the company has transformed into a national giant, leaving its mark on the urban canvas. Demonstrating outstanding financial performance, including a significant 33% year-on-year revenue increase in FY23, Prestige Estates Projects continues to be a beacon of resilience in the dynamic real estate sector.

The company’s strategic vision, strong business units, and commitment to innovation enable the company’s continued growth. With diversification into hospitality, retail and sustainable businesses, Prestige Estates Projects is not only adapting to market trends but also leading with a responsible and forward-thinking approach. What do you think about this company? Let us know your thoughts in the comments section below!

Written by Akshita Malu

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