Prestige Estates Projects Limited (PRESTIGE) AI Stock Analysis

• Market Cap: ₹671.90B
• Dividend Yield: 0.12%
• Average Volume (3M): 19.50K
• Price to Earnings (P/E): 125.1
• Beta (1Y): 1.68
• Revenue Growth: -13.75%
• EPS Growth: -62.65%
• Country: IN
• Employees: 8,351
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Diversified
• EPS (TTM): 6.80
• Shares Outstanding: 430,730,220
• 10 Day Avg. Volume: 12,706
• 30 Day Avg. Volume: 19,501
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,809.25
• Price Target Upside: 15.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: ₹1,637.00 ▲(4.94% Upside)

Prestige Estates Projects Limited faces significant challenges, primarily due to its financial performance and valuation. The company's declining profitability and high leverage are concerning, compounded by poor cash flow management. Technical analysis indicates weak momentum, and the high P/E ratio suggests overvaluation. These factors contribute to a cautious outlook on the stock.

Positive Factors

Brand Reputation

Prestige's strong brand reputation and market reach enable it to attract customers and partners, supporting long-term revenue stability and growth.

Diverse Revenue Streams

Diverse revenue streams across residential, commercial, and hospitality sectors provide resilience against sector-specific downturns.

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, supporting long-term profitability.

Negative Factors

Declining Revenue

Declining revenues can signal reduced demand or competitive pressures, potentially impacting long-term growth and market position.

High Leverage

Increased leverage heightens financial risk and may limit the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow indicates cash management issues, potentially restricting operational flexibility and investment capacity.

Prestige Estates Projects Limited Business Overview & Revenue Model

Company Description

Prestige Estates Projects Limited (PRESTIGE) is a prominent real estate development company based in India, specializing in a diverse range of projects that include residential, commercial, retail, leisure, and hospitality segments. The company has established a strong presence across key cities in India, delivering high-quality real estate solutions and creating landmark developments that cater to various customer needs.

How the Company Makes Money

Prestige Estates Projects Limited generates revenue primarily through the development and sale of residential properties, including apartments, villas, and gated communities. Additionally, the company earns income from the leasing and management of commercial spaces such as office buildings and shopping malls. The hospitality segment contributes to its earnings through the operation of hotels and resorts. Strategic partnerships and joint ventures with other real estate firms and financial institutions also play a significant role in enhancing its revenue streams. The company's ability to leverage its brand reputation and extensive market reach further augments its financial performance.

Prestige Estates Projects Limited Financial Statement Overview

Summary

The financial performance of Prestige Estates Projects Limited is mixed. The income statement shows declining revenues and margins, with a significant drop in net profit margin. The balance sheet indicates increased leverage and a weakened return on equity. Cash flow challenges are evident with significant negative free cash flow, suggesting issues in cash flow management.

Income Statement

The income statement reveals mixed results. Although the company experienced a significant decline in total revenue for 2025 compared to 2024, the gross profit margin for 2025 was relatively healthy at 72.53%, up from 64.98% in 2024. Net profit margin decreased to 6.04% from 17.45% in the previous year, indicating pressure on profitability. Additionally, both EBIT and EBITDA margins showed a contraction, reflecting potential operational challenges.

Balance Sheet

The balance sheet shows a stable equity ratio of 26.23% for 2025, with a slight improvement in stockholders' equity. However, the debt-to-equity ratio increased to 0.85 from 1.19, indicating a rise in leverage, which could pose a risk if the company's earnings do not improve. Return on equity has decreased significantly to 3.03% from 12.17% in 2024, reflecting diminished profitability.

Cash Flow

Cash flow analysis indicates a challenging situation, with negative free cash flow worsening to -22,843 million in 2025. Operating cash flow to net income ratio was negative, a stark contrast to positive figures in previous years, suggesting cash flow management issues. The company's cash position remains relatively stable, yet the negative free cash flow to net income ratio indicates poor cash conversion from profits.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	82.16B	77.36B	78.77B	83.15B	71.47B	62.91B
Gross Profit	58.69B	56.10B	51.19B	40.33B	28.25B	29.39B
EBITDA	32.21B	29.45B	40.21B	22.63B	21.47B	15.46B
Net Income	5.83B	4.67B	13.74B	9.42B	14.56B	11.50B
Balance Sheet
Total Assets	0.00	587.95B	485.19B	365.83B	267.19B	304.44B
Cash, Cash Equivalents and Short-Term Investments	58.37B	32.50B	34.26B	30.72B	23.62B	29.86B
Total Debt	0.00	131.80B	134.58B	94.20B	47.55B	72.50B
Total Liabilities	-171.81B	428.91B	367.18B	263.24B	196.24B	208.97B
Stockholders Equity	171.81B	154.23B	112.89B	99.75B	66.75B	90.95B
Cash Flow
Free Cash Flow	0.00	-22.84B	-6.09B	-1.11B	11.01B	-1.30B
Operating Cash Flow	0.00	-7.01B	12.97B	15.39B	18.53B	21.40B
Investing Cash Flow	0.00	-16.27B	-25.48B	-27.56B	4.91B	-40.45B
Financing Cash Flow	0.00	20.70B	19.69B	5.46B	-6.45B	15.98B

Prestige Estates Projects Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1559.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRESTIGE, the sentiment is Neutral. The current price of 1559.9 is below the 20-day moving average (MA) of 1591.35, below the 50-day MA of 1636.74, and above the 200-day MA of 1487.34, indicating a neutral trend. The MACD of -26.32 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PRESTIGE.

Prestige Estates Projects Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OBEROIRLTY	70 Outperform	₹586.55B	28.44		0.50%	-4.15%	-5.81%
SUNTECK	68 Neutral	₹65.43B	40.65		0.34%	-8.97%	61.83%
BRIGADE	64 Neutral	₹228.41B	30.36		0.27%	-0.80%	43.41%
GODREJPROP	64 Neutral	₹599.25B	39.39		―	45.90%	25.36%
Sector *	63 Neutral	$7.15B	13.09	-0.31%	6.85%	4.03%	-25.34%
PHOENIXLTD	61 Neutral	₹555.27B	52.35		0.16%	-5.13%	-2.32%
PRESTIGE	54 Neutral	₹671.90B	125.06		0.12%	-13.75%	-62.65%

Prestige Estates Projects Limited Corporate Events

Prestige Estates Issues Corporate Guarantee for Subsidiary Loan

Prestige Estates Projects Limited has announced the issuance of a corporate guarantee for a loan facility of up to INR 175 Crores availed by its wholly-owned subsidiary, Prestige Hospitality Ventures Limited. This guarantee, provided on an arm’s length basis, is a contingent liability and currently has no impact on the company’s financials, but it underscores the company’s support for its subsidiary’s expansion and operational needs.

Prestige Estates Reports Mixed FY25 Performance Amid Strong Q4 Growth

Prestige Estates Projects Limited reported a significant operational performance for Q4 and FY25, with a 48% year-on-year growth in new sales for the fourth quarter, driven by strong customer response to new launches and premium offerings. However, the full-year figures showed a 19% decline in new sales due to deferred launches amid approval delays, impacting the company’s overall sales volume and units sold.