Prestige Estates: Pan-India Expansion and Strong Execution Drive Stock Upside
Nomura has initiated coverage on Prestige Estates with a 'Buy' recommendation, citing the company's transformation into a pan-India real estate player and strong annuity and hotel portfolio. The brokerage sees a potential upside of nearly 17% from current levels.
Prestige EstatesReal EstatePanindia ExpansionStock AnalysisNomuraReal EstateSep 17, 2025
Nomura initiated coverage on the stock with a 'Buy' recommendation and a price target of ₹1,900. The price target implies a potential upside of nearly 17% from Tuesday's closing levels.
The brokerage wrote in its note that Prestige Estates is 'doing all the right things' — transforming into a pan-India real estate player while simultaneously building a strong annuity and hotel portfolio. This strategic shift is expected to position the company for sustained growth in the highly competitive real estate market.
Nomura expects pre-sales in FY26F to reach ₹29,000 crore, representing a growth of more than 70% year-on-year, compared with management's guidance of ₹26,000 crore. The brokerage also sees upside risks to this estimate, driven by the company's robust execution capabilities and expanding footprint across India.
Prestige's superior execution capabilities are expected to scale up its annuity and hotel EBITDA by four to five times over the next four to five years. The company's net debt-to-equity ratio is also expected to remain stable, providing a solid financial foundation for future growth.
However, Nomura also highlights potential downside risks, including a slowdown in the Bengaluru real estate market or weaker-than-expected leasing of annuity assets, which could weigh on the company's growth prospects.
Shares of Prestige Estates Projects settled 1.93% higher on Tuesday at ₹1,624.90. The stock is down 2% so far in 2025, but it has risen nearly 50% over the last six months, reflecting the market's confidence in the company's strategic initiatives and execution capabilities.
Prestige Estates Projects Limited is a leading real estate developer in India, known for its high-quality residential, commercial, and retail projects. The company's focus on diversification and expansion into new markets is expected to drive long-term value for its shareholders.
Frequently Asked Questions
What is Nomura's recommendation for Prestige Estates Projects Limited?
Nomura has initiated coverage on Prestige Estates with a 'Buy' recommendation and a price target of ₹1,900, implying a potential upside of nearly 17% from current levels.
What are the key growth drivers for Prestige Estates according to Nomura?
The key growth drivers for Prestige Estates, as per Nomura, include its transformation into a pan-India real estate player, strong annuity and hotel portfolio, and robust execution capabilities.
What are the expected pre-sales for Prestige Estates in FY26F?
Nomura expects pre-sales for Prestige Estates in FY26F to reach ₹29,000 crore, representing a growth of more than 70% year-on-year.
What are the potential risks to Prestige Estates' growth prospects?
Potential risks include a slowdown in the Bengaluru real estate market or weaker-than-expected leasing of annuity assets, which could impact the company's growth.
How has the stock performance of Prestige Estates been in the past six months?
Prestige Estates Projects' shares have risen nearly 50% over the last six months, despite being down 2% so far in 2025.
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