PRESTIGE ESTATES SHARE PRICE: POSITIONAL TRADING

Diversified business model which is across office, retail, residential and hospitality segments, it also has operations going on in 12 key locations of India. 

Expansion of partnership with co-working operator Awfis.

Founded in 1986.

The company has finished 247 projects till June 2020.

The company is eyeing at ‚āĻ 10,000 Cr sales booking by FY25.

CHART PATTERN

MOVING AVERAGE CROSS OVER

SUPERB RELATIVE STRENGTH

For more details on the technical analysis please go through the information mentioned below.

FINANCIAL KEY METRICS

VALUES

Market capitalization

‚āĻ 18,851 Cr

Stock P/E

47.8

ROCE

12.3 %

ROE

6.49 %

Debt to equity ratio

0.84

Promoters holding

65.5 %

52 Week range

‚āĻ 522 / 256

Once Peter Lynch said, ‚ÄúThe key to making money in stocks is not to get scared out of them‚ÄĚ.¬†

So, abiding with this quote we‚Äôre back with an interesting article wherein we would do a root cause analysis of Prestige estates share price to confirm whether this stock can be in our watchlist or not.‚ÄĮ¬†

BUSINESS ANALYSIS 

Prestige Estates share has a diversified business model which is across office, retail, residential and hospitality segments, it also has operations going on in 12 key locations of India. 

With an investment of around ‚āĻ 70 Cr, Prestige Estates has planned to expand its partnership with co-working operator Awfis and are going to establish 6 more centers across major cities.¬†

The company is founded in 1986 and had a turnover of ‚āĻ 3,518 Cr in the financial year 2015.¬†

Due to the vision of CMD Irfan Razack and marshaled by his brothers Rezwan Razack and Noaman Razack, the company has built a strong footprint in the real estate business. 

The company has finished 247 projects which covers around 134 million sq. Ft area which is a stat from 30th June 2020. It also has 45 ongoing projects and holds a land bank of 262 acres. 

¬†The company is eyeing at ‚āĻ 10,000 Cr sales booking by FY25 which is a great vision and is expected from the 5th largest listed developer.¬†

Prestige Estates is expecting Bengaluru to give them around ‚āĻ 4,500 Cr of bookings, Hyderabad ‚āĻ 1,500 Cr, Mumbai ‚āĻ 2,000 Cr, Chennai and Noida ‚āĻ 1,000 Cr each.¬†

Currently the company is experiencing a pickup in all segments.  

Three new projects in Mumbai are launched by the company which would be specifically in Mulund, Byculla and Bandra areas. 

To grow its rental portfolio, the company has also started a fresh round of capital expenditure of ‚āĻ 3,500-4,000 Cr over FY22-25.¬†

In between Sept 2021 and Mar 2022, residential launches of 12-15 msf are lined up in certain areas of South India, Noida (NCR), and Mumbai. 

In Q2-2021, the company sold 3.54 million square feet area as compared to 1.77 million square feet area which was in the corresponding period of the previous year. 

To build a footprint in the country‚Äôs commercial capital, Prestige estates has bought a 2.16-acre land parcel in Byculla locality for ‚āĻ 185 Cr.¬†

The company is planning to grow its annuity portfolio by ‚āĻ 2,800 Cr which is a key focus area for Prestige Estates CEO.¬†
For creating logistics and ware housing spaces, Prestige office ventures has acquired a 70% equity stake in Shipco infrastructure. 

KEY PRODUCTS/REVENUE SEGMENTS 

SALE OF COMMERCIAL FLATS. 

SALE OF SHOPS AND PLOTS. 

PROPERTY DEVELOPMENT. 

SALE OF SERVICES. 

OTHER SERVICES. 

PROJECT MANAGEMENT FEES. 

MAJOR PROJECTS DEVELOPED BY THE COMPANY INCLUDE: 

Prestige Acropolis 

Prestige Ozone 

The Forum mall 

Forum Value Mall 

The Collection, UB City 

Prestige Golfshire 

Prestige Shantiniketan 

Prestige Lakeside Habitat 

FINANCIAL KEY METRICS 

The Market Capitalization of Prestige Estates share is ‚āĻ 18,851 Cr.¬†

The price to earnings ratio of the Prestige Estates share is 47.8 which is higher to the industry price to earnings ratio of 33.7. 

The Prestige Estates share price has a return on capital employed of 12.3% which shows that the company is providing a good return on the capital invested and is better than FDūüėĀ.¬†

The return on equity of Prestige Estates share price is 6.49% which is also decent as per the stock’s valuations.¬†

The debt-to-equity ratio of Prestige Estates share price is 0.84 which is a need of their business model. Being in real estate business the company needs to take debt for land acquisitions and property development. 

FINANCIAL ANALYSIS      

Figures in Rs. Crores 

Quarterly Results  Mar 2020  Jun 2020  Sep 2020  Dec 2020  Mar 2021  Jun 2021  Sep 2021 
Sales  1,982  1,274  1,875  1,848  2,268  1,416  1,344 
Expenses  1,491  836  1,352  1,411  1,718  1,086  956 
Operating Profit  491  438  523  436  550  330  389 
OPM %  0  0  0  0  0  0  0 
Other Income  35  23  42  81  1,562  58  48 
Interest  258  247  244  241  258  132  180 
Depreciation  177  164  166  140  122  113  114 
Profit before tax  90  50  154  136  1,732  143  142 
Tax %  0  1  0  0  0  0  0 
Net Profit  15  2  60  59  1,336  57  76 
EPS in Rs  0  0  1  1  33  1  2 

For the quarter ended 30-9-2021, Prestige Estates share noted a sale of ‚āĻ 1,344 Cr which is less by 28% from Sept-2020.¬†

The operating profit of Prestige Estates share was ‚āĻ 389 Cr in the last quarter ended 30-9-2021.¬†

The Net profit of¬†Prestige Estates share¬†was ‚āĻ 76¬†Cr in the quarter ended 30-6-2021.¬†

Figures in Rs. Crores 

Balance Sheet  Mar 2016  Mar 2017  Mar 2018  Mar 2019  Mar 2020  Mar 2021  Sep 2021 
Share Capital   375  375  375  375  401  544  401 
Reserves  3,825  4,040  4,358  3,852  4,959  6,274  6,347 
Borrowings  5,374  5,739  7,416  8,487  9,272  3,840  5,648 
Other Liabilities   6,886  6,676  6,754  15,720  14,844  15,935  15,708 
Total Liabilities  16,460  16,830  18,902  28,433  29,476  26,450  28,104 
Fixed Assets   932  3,622  5,135  6,732  8,986  3,780  4,349 
CWIP  982  1,795  2,508  1,645  2,143  2,740  3,096 
Investments  3,296  355  435  778  789  907  1,012 
Other Assets   11,250  11,058  10,825  19,277  17,558  19,023  19,647 
Total Assets  16,460  16,830  18,902  28,433  29,476  26,450  28,104 

For quarter ended 30-09-21, the reserves in the company have increased which is a good sign as investors seem to be interested in this stock. 

From the previous quarter (Mar-2021), the borrowings have increased but considering the overall average value it seems to be quite lesser. 

SHARE HOLDING SYNOPSIS 

Figures in % 

Share Holding  Mar 2020  Jun 2020  Sep 2020  Dec 2020  Mar 2021  Jun 2021  Sep 2021 
Promoters  65.48  65.48  65.48  65.48  65.48  65.48  65.48 
FIIs  29.42  30.11  29.66  29.45  28.9  28.15  25.31 
DIIs   3.86  2.62  2.91  2.94  3.6  3.93  5.68 
Public  1.24  1.79  1.95  2.13  2.01  2.44  3.53 

Promoters have maintained their position which is great positive for Prestige Estates share price. 

DIIs have increased their stake in quarter ended 30-09-21 to 5.68% from 3.93%. 

Retail investors are also very much interested in this stock. 

This is a brief overview of the financials of Prestige Estates share which show cases the dominance in their respective market. 

Now, let’s deep dive into the technicalities of¬†Prestige Estates share¬†price.¬†

TECHNICAL ANALYSIS 

CHART PATTERN ANALYSIS 

If we take a closer look at the chart in a daily time frame, the share price is trading a rectangular channel which is consolidating from a long time. 

This time we’re keeping a short-term view for this stock and hence a short target is shown in the below image. 

As per the current chart, a breakout is achieved on closing basis and a rally is likely to take place in upward direction. 

A good target of 10% can be easily achieved if an individual makes a position in this stock. 

The Prestige Estates¬†share price on 23rd December¬†2021 is ‚āĻ 471.¬†

MOVING AVERAGE 

For Prestige Estates share price analysis, we are taking 9 days and 21 days moving averages. 

As per the current chart, the 9 days moving average is crossing the 21 days moving average which is a good indicator to enter in this stock. 

Blue line shows the 21 days moving average and the red line indicates the 9 days moving average.

RELATIVE STRENGTH OF THE STOCK 

In daily timeframe, relative strength of the stock is positive. 

This indicator helps to identify the health of the stock and its positiveness makes the conviction more stronger. 

Image source: Tradingview.com

DISCLAIMER

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