“The greatest achievement is to outperform yourself”.
Prestige Estates share has achieved the target of 17% which we had analyzed and here we are trying to do a root cause analysis of the company on how did it perform as per our expectation.
Prestige Estates share is in the sector of real estate so let’s investigate the market outlook for real estate business.
Let’s start with some introduction related to real estate sector.
Real estate business contains four sub sectors:
The major driving force for growth in this sector is the development in the corporate environment and demand for office spaces.
Real estate industry stands 3rd among the 14 major sectors which affect the economy in some or the other way.
This industry is the second highest employment generator in India.
Real estate sector is expected to receive a great interest from non-resident Indian (NRI) in short as well as long term.
In the year 2019, real estate business was ₹ 12,000 Cr which is estimated to grow till ₹ 65,000 Cr by 2040.
This sector is also expected to contribute around 13% to country’s GDP by 2025.
In 2022, through infrastructure and real estate investment trusts the Indian firms are expected to raise > ₹ 3.5 trillion which is an estimate by ICRA.
By 2025, Savills India estimates that there would be a significant real estate demand for data centers and this increment will be around 15-18 million sq-ft.
5.7 million square feet office space was leased by the manufacturing sector in 2020 which accounted for 24%.
Currently there is a shortage of housing in urban areas which is around 10 million units and is stated by Economic Times Housing Finance Summit.
There has been some major investments and developments in real estate sector so let’s try to decode it.
In India, the private equity investment inflows stood at US $ 3.3 billion from Jan-2021 to Sept-2021.
Across seven major cities in India, the home sales volume rose to 62,800 units in Q3, 2021 from 29,520 units in Q3, 2020. This is a surge of 113% YoY.
In Q3 of 2021, there was a total investment of 77% of which respective cities contributed accordingly:
Mumbai- 39%, NCR-Delhi-19% and Bengaluru-19%.
Government Initiatives have made the progress path of real estate sector a bit easier!
Smart city project initiative of building 100 smart cities is a great opportunity for the real estate companies to grab.
RBI in Oct-2021 announced to keep interest rate unchanged at 4% which is a major boost to the real estate sector in the country.
India has formally approved 425 SEZs (Special economic zone) as of Jan-2021 out of which 265 are already operational.
The outlook for real estate sector looks quite promising.
RECENT BUSINESS NEWS OF PRESTIGE ESTATES SHARE
Prestige Estates share achieved its highest ever collections of ₹ 2,431.6 Cr during Dec-2021 quarter and is up by 70 % YoY.
The company has expanded its partnership with Awfis and has planned to establish 6 more centres across major cities. The planned investment by the company is around ₹ 70 Cr.
Let’s check how did Prestige Estates share perform financially.
Prestige Estates share has revealed its updates on real estate operations for Q3 FY22.
The company has registered highest ever quarterly sales of ₹ 42,676 million and is up by 111% YoY.
Prestige Estates share achieved its highest ever collections of ₹ 24,316 million and is up by 70% YoY.
The sales of 9 months of FY22 (April-21 to December-21) are ₹ 71,134 million and the collections for the same period is ₹ 50,054 million which is up by 97% and 51% YoY respectively.
|Sales (INR, Mn)||42,676||20,260||111%||71,134||36,103||97%|
|Collections (INR, Mn)||24,316||14,303||70%||50,054||33,076||51%|
Let’s figure out how the price action worked for Prestige Estates share in 19 trading sessions which helped the stock to achieve 17%.
In the previous analysis, rectangular channel was visible in the daily timeframe.
With good volumes and strong financials, the company zoomed till its desired target price.
Click here for previous analysis on Prestige Estates share.
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