India's Prestige Estates Projects posts higher Q2 profit on strong housing demand
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India's Prestige Estates Projects reported a more than six-fold jump in second-quarter profit on Tuesday, aided by a buoyant housing demand.
The real estate developer's consolidated net profit rose to 8.51 billion Indian rupees ($102.22 million) in the quarter ended Sept. 30, from 1.41 billion rupees reported a year earlier.
It launched five residential projects in the quarter, with sales surging 102% year-on-year to 70.93 billion rupees during the quarter.
For further results highlights, click: (nFWN3C82RY)
KEY CONTEXT
Real estate companies have benefited from improved home demand in urban areas as consumer confidence drove purchases in the sector despite high borrowing rates.
Peers Godrej Properties and DLF reported higher quarterly profits for the period, while Sobha reported a decline in profit as higher expenses offset strong demand for luxury apartments.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 months) Analysts' sentiment
months)
RIC PE EV/EBITDA Revenue Profit growth Mean # of Stock to
rating* analysts price
growth target**
Prestige Estates 38.17 14.70 15.55 19.76 Buy 16 1.15
Projects
Sobha 21.23 12.88 16.21 84.13 Strong 12 0.38
Buy
Godrej Properties 55.16 81.57 27.31 32.09 Hold 18 1.12
DLF 46.62 56.12 17.31 30.59 Buy 16 1.05
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock is last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPT STOCK PERFORMANCE
-- All data from LSEG -- $1 = 83.2516 Indian rupees
