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Robust pipeline

Launches at new highs     

Prestige Estates Projects (PEPL IN) registered sales of INR 163bn, up 81% YoY in 9MFY24 and surpassed the entire sales of FY23 by 26%. It achieved daily sales average of 31 units. Around 30msf of new projects were launched, which contributed ~80% to total sales. Collections reached an all-time high of INR 84.7bn, with YoY growth of 20%.   

In Q3, sales value decreased 25% QoQ but rose 111% YoY to INR 53bn, with volume at 5.46msf, down 20% QoQ but up 88% YoY. The group sold 2,467 units during the period. A significant portion of this sales success (~INR 24bn) was attributed to the highly successful launch of The Prestige city in Hyderabad, marking one of the largest single project launches, spanning 12msf. Also, PEPL launched projects in Bengaluru and Mumbai (2msf), taking the total to 14.62msf in Q3, the highest launches in a single quarter. Revenue from operations was ~INR 18bn, down 19.7% QoQ and 22.5% YoY.

Strong pipeline

Upcoming pipeline is robust at 53msf, valued at INR 420bn, providing with launch visibility spanning two fiscal periods. Upcoming launch pipeline comprises a balanced blend of 40% joint venture projects and 60% outright projects. Along with this, it also has ongoing unsold inventory of INR 160bn. PEPL is on track to achieve its FY24 sales guidance of INR 200bn. Furthermore, completions are expected to surpass 20msf for the fiscal year.     

Valuations: Maintain Accumulate; TP raised to INR 1,227

PEPL is building its pipeline by investing heavily in business development opportunities. The company’s strategy is to explore other geographies beyond South India and strengthen its foothold, pan-India. We maintain Accumulate with a higher TP of INR 1,227 from INR 930, on 1.15x one-year forward NAV and introduce FY26E.

Please refer disclaimer at Report
SEBI Registration number is INH000000933