Prestige Estates Projects Limited

Real Estate — Real Estate - Diversified · NSE

₹1,492.00+₹1.10 (+0.07%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Prestige Estates Projects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Prestige Estates Projects Limited, together with its subsidiaries, engages in the real estate development and related activities in India. It develops residential projects, such as apartments, villas, integrated townships, and plotted developments.

IndustryReal Estate - Diversified

SectorReal Estate

Employees11,092

Annual revenue₹12,545 Cr

How does it make money?

Turns over ₹12,545 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 11,092 employees supports ₹1.13 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.13 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 27.1% and earnings to grow about 42.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+27.1%

Est. earnings growth+42.1%

Analysts15

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +53% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+53%

Margin effect-17%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.8% is weak

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

56.4x

3Y Median

53.7x

40 monthly readings · mean 74.6x · range 25.7x–155.9x

Sector Median

30.2x

median of 3 sector peers

🟡Currently trading close to its 3y median of 53.7x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 87% above the peer median of 30.2x.

vs. its own history

Fair

53.7x median over 40 months · +5%

vs. sector peers

Expensive

30.2x median of 3 peers · +87%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

20.3x

PEG

6.82

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 26.9% to 31.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 87% over 3 years, from ₹9,420 Cr to ₹17,659 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 180% against revenue up 53% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 26.9% to 31.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 87% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 15.2% CAGR
Latest reported year was 15.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.2x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹340 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹64,265 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

56.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.95x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹26.45

Profitable

Profitable on a per-share basis

ROE

7.8%

Weak

Weak capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.05x

Moderate

Moderate leverage

Revenue Growth (YoY)

15.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.3%

Falling

Profits are shrinking

Dividend Yield

0.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹340 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

23.7%

Good

Healthy core-business profitability

Net Margin

8.7%

Average

Average bottom-line conversion

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1460.4 / 1527.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8,215 Cr	₹7,803 Cr	₹7,205 Cr	₹12,545 Cr	+15.2%
EBITDA	₹2,208 Cr	₹2,776 Cr	₹2,789 Cr	₹3,951 Cr	+21.4%
EBITDA Margin	26.9%	35.6%	38.7%	31.5%	—
PAT (Net Profit)	₹942 Cr	₹1,374 Cr	₹468 Cr	₹1,196 Cr	+8.3%
EPS	₹23.49	₹34.28	₹11.19	₹27.76	+5.7%
ROE	9.4%	12.2%	3.0%	7.3%	—
ROCE	14.3%	17.6%	8.6%	12.5%	—
Total Debt	₹9,420 Cr	₹13,458 Cr	₹13,180 Cr	₹17,659 Cr	+23.3%
Free Cash Flow	-₹111 Cr	-₹609 Cr	-₹1,452 Cr	₹340 Cr	—

🟢 Revenue has grown at 15.2% a year over 3 years.

🟢 EBITDA has grown at 21.4% a year over 3 years.

🟢 EBITDA Margin has risen from 26.9% to 31.5% over 3 years (+4.6 pts).

🟢 PAT (Net Profit) has grown at 8.3% a year over 3 years.

🟢 EPS has grown at 5.7% a year over 3 years.

🔴 ROE has fallen from 9.4% to 7.3% over 3 years (-2.1 pts).

🔴 ROCE has fallen from 14.3% to 12.5% over 3 years (-1.8 pts).

🔴 Total Debt has grown at 23.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹111 Cr to ₹340 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹73,368 Cr

Total Liabilities

₹56,628 Cr

Cash & Equivalents

₹1,556 Cr

Operating Cash Flow

₹3,223 Cr

Capex

-₹2,883 Cr

Shareholding (proxy)

Institutional Holding

28.8%

Insider Holding

64.3%

Corporate Actions

Next Earnings

11 Nov 2026

Dividend Rate

₹2

Ex-Dividend Date

13 Aug 2026

Analyst Consensus

Recommendations

19 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹1,901.1

+27.4% vs CMP

Target Range

₹1,440 – ₹2,380

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

5 mixed1 general

Prestige Estates uploads Q1FY27 earnings call transcript for investors

scanx.trade, 17 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Prestige Estates Q2 sales bookings rise 20% to Rs 7,225 cr on better housing demand

The Economic Times, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Prestige Estates Projects Share Price Fall Streak Today

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Prestige Estates shares rise as Q2 pre-sales grow 20% to ₹7,225 crore; ₹40,000 crore launch pipeline planned

CNBC TV18, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Prestige Estates shares rise 2% as Q2 pre-sales, collections beat Morgan Stanley estimates

Business Today, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Prestige Estates' sales bookings rise 20% to ₹7,225 crore in Q2FY27

Business Standard, 13 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Growth · Valuation · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑