Despite a Slow Start, Prestige Estates set to remain 'On Track' in Pre-Sales Target

The annual pre-sales target for Prestige Estates Projects is on track, despite a slow start in the first half of 2024-25 (FY25).

This fiscal, the Bengaluru-based real estate major has managed to achieve only 29% of its target, or about Rs. 7,000 crores, during April-September.

The momentum is picking up, according to Razack. There's a lot of inventory in the pipeline, all at different stages of approval. He said that once these get approved and receive the RERA number, they will come to the market.

There's a lot of interest, including direct approaches from buyers, and there's a lot of demand. The company will hit the annual target backed by a strong product lineup and solid market traction, despite a few bumps in the current quarter.

He described the company's progress in multiple areas, including Delhi NCR, Indirapuram, Hyderabad, Bengaluru, Goa, and Chennai.

The first half of fiscal 2025 saw a sharp 36% year-on-year decline in Prestige's pre-sales, despite achieving a solid 63% growth in fiscal 2024. High capital expenditures in the company’s investment properties business and a slowdown in pre-sales momentum have led to the downgrade, according to Morgan Stanley.

The brokerage highlighted that the stock could outperform if approvals are granted on time and residential Ebitda margins improve beyond the current 27% The stock is not as cheap as its peers in terms of implied P/E ratio. It based on pre-sales and net margins, according to the firm.