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 ₹ 10,000 Cr sales booking by FY25.
MOVING AVERAGE CROSS OVER
SUPERB RELATIVE STRENGTH
For more details on the technical analysis please go through the information mentioned below.
FINANCIAL KEY METRICS
₹ 18,851 Cr
Debt to equity ratio
52 Week range
₹ 522 / 256
Once Peter Lynch said, “The key to making money in stocks is not to get scared out of them”.
So, abiding with this quote we’re 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.
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 ₹ 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 ₹ 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 ₹ 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 ₹ 4,500 Cr of bookings, Hyderabad ₹ 1,500 Cr, Mumbai ₹ 2,000 Cr, Chennai and Noida ₹ 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 ₹ 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’s commercial capital, Prestige estates has bought a 2.16-acre land parcel in Byculla locality for ₹ 185 Cr.
The company is planning to grow its annuity portfolio by ₹ 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.
SALE OF SERVICES.
PROJECT MANAGEMENT FEES.
MAJOR PROJECTS DEVELOPED BY THE COMPANY INCLUDE:
The Forum mall
Forum Value Mall
The Collection, UB City
Prestige Lakeside Habitat
FINANCIAL KEY METRICS
The Market Capitalization of Prestige Estates share is ₹ 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 FD.
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.
Figures in Rs. Crores
|Quarterly Results||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
|Profit before tax||90||50||154||136||1,732||143||142|
|EPS in Rs||0||0||1||1||33||1||2|
For the quarter ended 30-9-2021, Prestige Estates share noted a sale of ₹ 1,344 Cr which is less by 28% from Sept-2020.
The operating profit of Prestige Estates share was ₹ 389 Cr in the last quarter ended 30-9-2021.
The Net profit of Prestige Estates share was ₹ 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|
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 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.
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 ₹ 471.
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
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