Prestige Estates Projects Limited (PRESTIGE) AI Stock Analysis

• Market Cap: ₹660.42B
• Dividend Yield: 0.11%
• Average Volume (3M): 19.53K
• Price to Earnings (P/E): 68.1
• Beta (1Y): 1.77
• Revenue Growth: -2.28%
• EPS Growth: 5.18%
• Country: IN
• Employees: 8,351
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 5.20
• Shares Outstanding: 430,730,220
• 10 Day Avg. Volume: 36,847
• 30 Day Avg. Volume: 19,530
• PEG Ratio: -1.56
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 6.68
• P/FCF Ratio: -21.49
• 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: ₹2,048.33
• Price Target Upside: 20.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹1,456.00 ▼(-14.53% Downside)

Prestige Estates Projects Limited's overall stock score is primarily influenced by its mixed financial performance and stretched valuation. The company's high leverage and negative cash flow are significant concerns, while the technical indicators suggest limited upward momentum. The high P/E ratio further indicates potential overvaluation, contributing to a cautious outlook.

Positive Factors

High gross profit margin

A 72.53% gross margin provides a durable buffer versus input cost volatility and supports development-level profitability. Sustained high gross margins enable reinvestment into projects and annuity assets, improving medium-term cash generation and project underwriting.

Diversified annuity and sales mix

A mix of upfront residential sales and recurring leasing/hospitality income reduces revenue cyclicality. The annuity component from commercial and retail assets supports steadier cash flows and asset monetization options, aiding stability and capital recycling over several quarters.

Stable equity ratio and slight equity improvement

A 26.23% equity ratio and improved stockholders' equity provide a capital buffer to absorb project execution setbacks. This balance sheet resilience supports access to financing and underpins medium-term project delivery and potential structured asset transactions.

Negative Factors

Large negative free cash flow

Free cash flow of -22,843 million signals substantial cash burn from development activity. Persistent negative FCF constrains funding for ongoing construction, increases reliance on external financing, and elevates refinancing and liquidity risk over the coming quarters.

Declining revenue and squeezed net margins

Falling revenue together with net margin compression to 6.04% materially weakens internal cash generation and return on projects. This deterioration undermines the firm's ability to self-fund new launches and reduces resilience to market slowdowns across multiple reporting periods.

Weak ROE and leverage pressures

ROE falling to 3.03% indicates poor capital efficiency, while reported higher leverage raises interest and refinancing sensitivity. Together these factors limit strategic flexibility, raise funding costs, and heighten risks if operating performance does not improve over the medium term.

Prestige Estates Projects Limited Business Overview & Revenue Model

Company Description

Prestige Estates Projects Limited, together with its subsidiaries, engages in the development and leasing of real estate properties in India. It develops a range of residential projects, including townships, apartments, luxury villas, mansions, row houses, town homes, golf developments, and affordable houses; commercial projects comprising office spaces, built-to-suit campuses, special economic zones, and IT parks; and retail properties, such as malls. The company also develops and owns hospitality properties, which include hotels, resorts, spas, and service apartments. In addition, it provides real estate services that comprise fit-out services, interior design and execution, facilities and property management, and project and construction management services. The company was founded in 1986 and is based in Bengaluru, India. Prestige Estates Projects Limited is a subsidiary of Razack Family Trust.

How the Company Makes Money

Prestige Estates Projects Limited generates revenue primarily through the sale and leasing of residential and commercial properties. The company's revenue model is anchored in several key streams: direct sales from residential developments, rental income from commercial properties, and long-term leases. Additionally, PRESTIGE engages in joint ventures and partnerships with other firms and investment groups, allowing for shared project costs and diversified risk. This collaboration often leads to larger projects that can yield higher returns. The company also capitalizes on the growing demand for real estate in urban areas, leveraging market trends and demographic shifts to enhance its earnings potential.

Prestige Estates Projects Limited Financial Statement Overview

Summary

Prestige Estates Projects Limited shows a mixed financial picture. The income statement reflects shrinking revenues and margins, while the balance sheet indicates increased leverage and weakened return on equity. Cash flow challenges are evident with significant negative free cash flow. While the company maintains a stable cash position, operational efficiency and cash flow management need improvement.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	77.95B	73.49B	78.77B	83.15B	63.90B	72.42B
Gross Profit	60.09B	59.76B	51.08B	41.93B	31.16B	29.02B
EBITDA	24.23B	21.64B	21.55B	17.76B	15.46B	17.08B
Net Income	5.27B	4.67B	13.74B	9.42B	11.50B	27.82B
Balance Sheet
Total Assets	0.00	587.95B	485.19B	365.83B	304.44B	267.19B
Cash, Cash Equivalents and Short-Term Investments	32.50B	32.50B	34.26B	16.18B	21.19B	23.62B
Total Debt	0.00	131.80B	134.58B	94.20B	72.50B	47.55B
Total Liabilities	-159.04B	428.91B	367.18B	263.24B	208.97B	196.24B
Stockholders Equity	159.04B	154.23B	112.89B	99.75B	90.95B	80.01B
Cash Flow
Free Cash Flow	0.00	-22.84B	-6.09B	-1.11B	-1.30B	11.01B
Operating Cash Flow	0.00	-7.01B	12.97B	15.39B	21.40B	18.53B
Investing Cash Flow	0.00	-16.27B	-25.48B	-27.56B	-40.45B	4.91B
Financing Cash Flow	0.00	20.70B	19.69B	5.46B	15.98B	-6.45B

Prestige Estates Projects Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1703.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 1703.5 is above the 20-day moving average (MA) of 1477.69, above the 50-day MA of 1570.12, and above the 200-day MA of 1592.78, indicating a neutral trend. The MACD of -21.81 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
SUNTECK	69 Neutral	₹60.90B	31.89	―	0.36%	-14.25%	17.95%
OBEROIRLTY	68 Neutral	₹561.17B	25.08	―	0.48%	2.76%	-3.84%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PHOENIXLTD	64 Neutral	₹614.71B	56.43	―	0.14%	-1.32%	-4.67%
BRIGADE	62 Neutral	₹194.24B	26.04	―	0.28%	11.20%	57.52%
GODREJPROP	59 Neutral	₹516.01B	32.17	―	―	37.14%	3.92%
PRESTIGE	54 Neutral	₹660.42B	68.06	―	0.11%	-2.28%	5.18%

Prestige Estates Projects Limited Corporate Events

Prestige Estates Publishes December-Quarter Financial Results in Leading Dailies

Prestige Estates Projects Limited has announced that its financial results for the quarter and nine months ended December 31, 2025 have been published in leading newspapers Business Standard (English) and Prajavani (Kannada), in line with regulatory disclosure requirements. By formally notifying the stock exchanges of this publication, the company underscores its compliance with SEBI’s listing regulations and ensures wider public access to its financial performance information, supporting transparency for investors and other market participants.

Prestige Estates’ Monitoring Report Confirms No Deviation in QIP Proceeds Use

Prestige Estates Projects Limited has disclosed that the monitoring agency, ICRA Limited, has submitted its report for the quarter ended 31 December 2025 confirming that there is no deviation in the utilisation of proceeds raised through its qualified institutional placement (QIP). The agency stated that the funds have been used in line with the stated objects of the issue, indicating adherence to regulatory requirements and reinforcing governance standards around capital deployment for shareholders and market regulators.

Prestige Estates Posts Record 9M FY26 Sales and Collections on Strong Multi-City Demand

Prestige Estates Projects Limited reported record operational performance for the quarter and nine months ended 31 December 2025, with pre-sales in Q3 FY26 rising 39% year-on-year to ₹41,836 million and nine‑month pre-sales surging 122% to ₹223,273 million, surpassing its previous full-year peak within just three quarters. The developer sold 1,811 units in the quarter and 8,598 units over nine months, achieving cumulative sales volume of 16.95 million sq. ft., supported by a geographically diversified mix led by Mumbai and Bengaluru, while average realizations grew 6% for the quarter and plot prices jumped 31% year-on-year; collections also increased 40% year-on-year to ₹45,475 million in Q3 FY26, underscoring strong cash flow visibility and reinforcing Prestige’s demand momentum and execution strength across its core markets.

Prestige Launches ₹5,000 Crore Evergreen Project at Raintree Park in Bengaluru’s Whitefield

Prestige Estates Projects Limited, a major Indian real estate developer with a large, diversified portfolio across key asset classes and cities, continues to build on its strong execution track record and sizeable development pipeline. The company’s latest move is the launch of Evergreen at Prestige Raintree Park in Whitefield, Bengaluru, a premium residential project planned on about 24 acres with around 2,000 apartments and 3.2 million sq ft of saleable area, targeting a broad mix of homebuyers through one- to four-bedroom units priced from about ₹92 lakh and an estimated gross development value of ₹5,000 crore. Positioned in the high-demand Whitefield micro-market, the project extends the previously launched Prestige Raintree Park by adding smaller-format residences while retaining a premium positioning, aiming to capture robust end-user and investor demand supported by nearby IT hubs, strong social infrastructure and improving connectivity, thereby reinforcing Prestige’s presence in Bengaluru’s upscale residential segment.

Prestige Estates Sets Up Wholly Owned Real Estate Subsidiary Orange Grove Lands

Prestige Estates Projects Limited has incorporated a new wholly owned subsidiary, Orange Grove Lands Private Limited, to undertake real estate development activities. The subsidiary, formed on 9 January 2026 with an authorised capital of Rs 10 lakh and paid-up capital of Rs 1 lakh, is intended to support Prestige’s growth strategy in property development, with the parent company subscribing in cash to 100% of its equity share capital.

Prestige Estates Confirms Proper Utilization of QIP Proceeds

Prestige Estates Projects Limited has released its Monitoring Agency Report for the quarter ending September 30, 2025, confirming that there has been no deviation in the utilization of proceeds from its Qualified Institutional Placement (QIP). The report, issued by ICRA Limited, assures stakeholders that the funds have been used as intended, aligning with the company’s strategic objectives and maintaining transparency in its financial operations.