(Reuters) -India’s Prestige Estates Projects reported a higher first-quarter profit on Tuesday, boosted by strong demand for launched apartments in the National Capital Region (NCR).
The Bengaluru-based developer said its consolidated net profit rose 26% year-on-year to 2.93 billion rupees ($33.4 million).
Revenue rose 24% to 23.07 billion rupees, helped by record quarterly sales from its expansion into NCR, which accounted for 59% of the company’s quarterly bookings.
For further earnings highlights, click here.
KEY CONTEXT
Indian real estate developers have benefited from a post-pandemic shift in buyer preferences towards larger, amenity-rich apartments.
This has prompted aggressive land deals and faster project launches. Prestige’s land costs in the reported quarter jumped 47% to 11.34 billion rupees.
However, as demand stabilises, developers are diversifying into newer geographies and timing their launches as per shifts in demand, analysts have said.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
Prestige Estates 45.72 18.09 46.31 89.13 Buy 18 0.90 0.11
Projects
Sobha 34.17 24.54 18.45 117.69 Buy 15 0.83 0.19
Brigade Enterprises 25.17 13.72 23.42 27.99 Strong 9 0.71 0.25
Buy
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.7990 Indian rupees
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Vijay Kishore)
