Feb'25 View on Prestige Estates Projects Ltd

Prestige Estate Projects has diversified business model across various segments, viz Residential, Office, Retail, Hospitality, Property Management and Warehouses with operations in more than 12 major locations in India. • Blended EBITDA margin in Q3FY25 improved to 35.7% from 30.7% in Q3FY24. • Occupancy for the office portfolio was steady at 90%. • Hospitality segment saw a healthy 18% yoy EBITDA growth. • Prestige reported a third straight quarter of weak pre-sales at Rs3000cr (down 43% yoy, 25% qoq). • 9MFY25 pre-sales of Rs10100cr (down 38% yoy) lagging FY25E guidance of Rs25000cr. • Management attributed the weakness to delays in launches. • Remains confident of getting approvals for various projects in the coming weeks. • We remain hopeful about a pick-up in launches based on management’s guidance. • We maintain ADD with a revised FV of Rs1,680/share (Rs1,830/share earlier).