Motilal Oswal Predicts 37% Upside for Prestige Estates: A Detailed Analysis
Prestige Estates Projects, a leading real estate developer, is in the spotlight after Motilal Oswal forecasts a 37% upside. The brokerage highlights strong presales, a robust launch pipeline, and a manageable debt level as key factors driving this positive outlook.
Prestige EstatesReal EstateMotilal OswalStock MarketInvestmentReal EstateNov 24, 2025
With a market capitalization of Rs 72,252 crore, the shares of Prestige Estates Projects Ltd were trading at Rs 1,678 per share, down 0.68 percent from the previous day’s closing price of Rs 1,688.85 per share. Over the past five years, the stock has delivered a robust return of 538 percent, significantly outperforming the NIFTY 50’s return of 102 percent.
Leading domestic brokerage house, Motilal Oswal, has issued a Buy recommendation for Prestige Estates Projects Ltd and set a target price of Rs 2,295 per share, implying an upside potential of 37 percent from its current market price. The brokerage's positive outlook is based on several compelling factors.
Prestige Estates achieved record performance in the first half of FY26, driven by outstanding launches and exceptional presales. The company generated presales worth Rs 18,100 crore in H1 FY26, a 157 percent year-over-year (YoY) growth, and has already surpassed the sales volume of the entire FY25. It launched nearly 19 million square feet of new projects across major cities, which was the primary driver for the increase in presales. Collections also showed substantial growth of 55 percent YoY in H1, indicating strong customer demand and steady cash inflows.
In addition to its sales momentum, Prestige Estates expanded its land bank by acquiring 266 acres with a future development value of Rs 33,100 crore across major cities like Bengaluru, Chennai, Hyderabad, Mysore, and Mumbai. The company has a significant upcoming launch pipeline worth Rs 27,200 crore lined up for the rest of FY26, ensuring continued growth visibility. The commercial business, including office and retail segments, also performed well, with retail malls seeing a 9 percent increase in turnover and occupancy rates of 93–99 percent, contributing to stable rental income.
Prestige Estates' financial performance was equally impressive. Revenue grew by 14 percent YoY to Rs 4,740 crore in H1, EBITDA increased by 26 percent YoY, and profit was up by 70 percent YoY to Rs 720 crore, with a margin of 15 percent. Although net debt increased, the leverage remains at a comfortable level, and borrowing costs have decreased.
If Prestige Estates maintains the strong presales, steady collections, and successful new launches seen in the first half of FY26, the company is well-positioned to achieve the anticipated 37 percent target. With a long launch pipeline, an expanding land bank, and solid performance across residential, office, and retail segments, Prestige Estates is well-prepared for sustained growth. However, maintaining this momentum will depend on customer demand, project punctuality, and financial discipline.
Prestige Estates is a top-tier real estate developer in India, known for constructing large residential townships, commercial office spaces, malls, hotels, and mixed-use projects in major cities. The company has a strong presence in markets like Bengaluru, NCR, Mumbai, Hyderabad, and Chennai, and is actively expanding through new launches, land acquisitions, and a large development pipeline. Beyond residential projects, Prestige Estates also operates malls and office spaces, generating stable rental income. With consistent demand, robust finances, and several new launches on the horizon, Prestige Estates is poised to become one of the fastest-growing real estate players in the country.
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Frequently Asked Questions
What is Motilal Oswal's target price for Prestige Estates Projects Ltd?
Motilal Oswal has set a target price of Rs 2,295 per share for Prestige Estates Projects Ltd, indicating an upside potential of 37 percent from its current market price.
What are the key factors driving the 37% upside forecast for Prestige Estates?
The key factors driving the 37% upside forecast for Prestige Estates include strong presale figures, a robust launch pipeline, and a manageable debt level.
How has Prestige Estates performed financially in the first half of FY26?
In the first half of FY26, Prestige Estates saw a 14 percent YoY growth in revenue to Rs 4,740 crore, a 26 percent YoY increase in EBITDA, and a 70 percent YoY increase in profit to Rs 720 crore with a margin of 15 percent.
What is Prestige Estates' land acquisition strategy?
Prestige Estates has expanded its land bank by acquiring 266 acres with a future development value of Rs 33,100 crore across major cities like Bengaluru, Chennai, Hyderabad, Mysore, and Mumbai.
What is the significance of Prestige Estates' commercial business?
Prestige Estates' commercial business, including office and retail segments, has performed well, with retail malls seeing a 9 percent increase in turnover and occupancy rates of 93–99 percent, contributing to stable rental income.
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