Motilal Oswal Financial Services has reiterated its 'Buy' rating on Prestige Estates Projects Ltd. and maintained a target price of ₹1,830, implying an upside potential of around 24% from the current market price of ₹1,471. According to the brokerage's analysis, the company is well positioned to scale up its residential segment through regional diversification and continued business development activities. As per the latest reports, Prestige Estates is expected to remain in focus as the brokerage maintains its positive outlook on the stock.
As per Motilal Oswal's channel checks, all projects launched in Q2 have received an encouraging response at the Expression of Interest stage, resulting in healthy sales conversion. The company had ₹24,500 crore of existing inventory as of Q1 FY27, which is expected to drive pre-sales in Q2 FY27 and ahead. The brokerage anticipates pre-sales of ₹6,500-7,000 crore (+10-15% YoY) in Q2 FY27, supported by the strong launch pipeline. According to the latest reports, Motilal Oswal expects strong bookings in all three projects launched during the quarter, indicating robust market demand for the company's residential offerings.
In Q2 FY27, Prestige Estates launched three projects with a combined GDV of ₹40 billion, including Prestige Parklane in Bengaluru (₹17.5 billion GDV), Prestige Palm Court in Chennai (₹12.2 billion GDV), and Garden Breeze at TPC Sarjapur in Bengaluru (₹10.5 billion GDV). In Q1 FY27, the company had launched three projects spanning 16.5 million square feet with a combined GDV of ₹122 billion. Consequently, the company has launched ₹162 billion worth of projects in the first half of FY27. Looking ahead, Prestige Estates plans to launch 23 projects in FY27, with a combined developable area of 57.1 million square feet and aggregate GDV of ₹573 billion.
According to Nomura's latest analysis, the real estate sector is expected to show resilient performance in Q2 FY27 despite volatile macro conditions. The brokerage expects launch momentum and pre-sales to strengthen into the second half of FY27, moving into the festive season. Prestige Estates is positioned among Nomura's preferred developers, with the brokerage expecting flat pre-sales year-on-year for the company. The sector's pre-sales trajectory is anticipated to improve sequentially as launch activity picks up, with delayed launches of some projects potentially being a disappointment. Overall, Nomura expects the sector's performance to be supported by strong fundamentals and continued demand for quality residential projects.
