Prestige Estates jumps after realty group acquires land for Indirapuram Extension township project
Prestige Estates Projects stock price, share market news: Prestige Estates Projects shares rose after the real estate firm said its group acquired 62.5 acres of prime land in the National Capital Region's Indirapuram Extension for an integrated township, The Prestige City.
Prestige Estates Projects stock price, share market news: Prestige Estates Projects shares rose on Friday after the real estate firm said its group acquired 62.5 acres of prime land in the National Capital Region's Indirapuram Extension for an integrated township, The Prestige City. The stock of Prestige Estates Projects surged by as much as Rs 71, or 6.8 per cent, to Rs 1,119 apiece in early deals on BSE.
At 10:30 am, Prestige Estates shares held on to much of their intraday gains, up 4.6 per cent for the day at Rs 1,096.1 apiece.
Prestige Estates said the cost of land acquisition amounted to Rs 468 crore along with a revenue share.
The Prestige City township will span more than 10 million square feet of saleable area, according to a regulatory filing.
The strategic acquisition marks a significant milestone for the Prestige Group as it expands its footprint in the dynamic NCR real estate market, and the investment underscores its confidence in the potential of the market and its long-term commitment to creating enduring value for stakeholders, the company said.
The projected gross development value (GDV) of the large-format project is more than Rs 10,000 crore, according to Venkat K Narayana, Group CEO of the Prestige Group.
The GDV showcases the company's commitment to diversifying its sales portfolio and to expanding footprints, Narayana said, adding: "We look forward to launching the project within the next two quarters and completing the development in 4 years."
"With our proven track record of delivering iconic developments, we are confident that ‘The Prestige City Indirapuram’ will set new benchmarks in this geography," said Irfan Razack, Chairman and Managing Director, Prestige Group.
How Prestige Group shares have fared in the past
Multibagger Prestige Estates shares have rewarded investors with a 167 per cent return in the past year, in line with a phenomenal rally in the sector driven by a post-COVID surge in demand across segments, sharply outperforming a 29 per cent gain in the headline Nifty50 index.
What to do with Prestige Estates shares
Last month, Geojit Financial Services downgraded the real estate company to 'hold' from 'accumulate' with a target price of Rs 1,295 per share.
The brokerage noted that though the company's outlook looks promising given its substantial presale volumes and its favourable performance across segments, the anticipated future growth had already been factored in the valuation.
Geojit Financial Services values the stock at an FY25 book value per share (BVPS) multiple of 3.7 times. Despite a dip in revenue in the December quarter, the real estate company's future growth remains intact with increasing demand in residentials, a healthy launch pipeline, and an upcoming annuity portfolio, the brokerage pointed out.
HDFC Securities maintained a 'buy' rating on Prestige Estates with a target of Rs 1,390, citing better-than-expected realisation/presales and improving visibility on office assets.
Prestige Estates Projects Q3 results
For the quarter ended December 31, 2024, Prestige Estates Projects reported a nearly two per cent increase in net profit to Rs 164.7 crore.
Its quarterly income, however, stood at Rs 1,970.5 crore as against Rs 2,347.5 crore for the corresponding period a year ago, according to a regulatory filing.
With inputs from agencies
Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
12:54 PM IST