Geojit Upgrades Prestige Estates to Buy: A Solid 28% Upside Potential
Brokerage firm Geojit Investments has upgraded real estate developer Prestige Estates Projects to ‘Buy’, citing strong pre-sales momentum, a diversified portfolio, and healthy launch visibility across key markets.
According to the brokerage, the company reported a robust performance in the first nine months of financial year 2026 (M9FY26), with pre-sales surging 122 per cent year-on-year (Y-o-Y) to ₹22,327 crore, already surpassing its previous full-year peak. This growth was led by a strong 40 per cent contribution from the NCR region. Quarterly sales volumes stood at 2.9 million square feet (msf), with over 8,500 units sold year-to-date (YTD), while average realisations rose 6 per cent.
Prestige Estates Projects (PEPL) is one of the leading real estate developers in India in terms of booking value. Its expansion is driven by a diverse portfolio, covering residential, office, retail, and hospitality segments, the brokerage said.
Geojit has revised the target price of ₹1,623, based on FY28E NAV. The target implies a potential upside of 28 per cent from Monday, March 17, closing price of ₹1,265 on the NSE. Around 02:30 PM, shares of Prestige Estates were trading at ₹1,326.80, up 4.82 per cent. In comparison, the benchmark NSE Nifty 50 was quoting at 23,859 levels, up by 278 points or 1.18 per cent. The company has a total market capitalisation of ₹57,149 crore.
According to the brokerage, while leasing activity remained steady, with 0.56 msf leased in Q3, portfolio occupancy stood strong above 95 per cent. Revenue for the quarter jumped 128 per cent Y-o-Y on the back of strong project completions, although Ebitda margin moderated to 22.5 per cent in Q3 compared to 34.3 per cent for 9M, due to an adverse product mix. Ebitda stands for earnings before interest, tax, depreciation and amortisation.
Analysts noted that management has raised its FY26 pre-sales guidance to over ₹30,000 crore, supported by a strong launch pipeline in Bengaluru, Hyderabad, and Chennai. Additionally, a sizeable unrecognised revenue base of ₹61,922 crore provides visibility on future cash flows.
While margins may remain under pressure in the near term due to higher business development spends and product mix, the brokerage believes current valuations are reasonable.
