Shares of Prestige Estates rose in Friday’s session after a global brokerage maintained its ‘overweight’ rating on the stock and raised the target price to Rs 1,770 from Rs 1,400. This new target indicates a potential 15 percent increase from the last close of Rs 1,540.75 per share on the BSE.
Early in the day, the stock surged to a high of Rs 1,616.2 per share, marking a nearly 5 percent gain and coming close to its 52-week high of Rs 1,675.
By 10:15 am, shares were trading 1.74 percent higher at Rs 1,565.00 on the NSE.
The brokerage increased the target price due to a positive pre-sales outlook for FY25, driven by a strong launch pipeline and ready inventory, even after a high base in FY24. However, the brokerage highlighted concerns about high gearing and low margins, indicating the company’s significant reliance on debt financing.
