Nomura has initiated coverage on Prestige Estates with a buy rating and a target price of ₹1,900 per share, implying an upside of about 17 percent from the current market price of ₹1,624.90.
The brokerage highlighted that Prestige Estates is “doing all things right” as it transforms into a pan-India player while simultaneously building a solid annuity-plus-hotel portfolio. Nomura expects FY26 pre-sales to reach ₹290 billion, which would mark a 70 percent year-on-year growth and also surpass the company’s guidance of ₹260 billion, with further upside risks possible.
Nomura added that Prestige Estates’ superior execution capabilities should help scale up annuity and hotel EBITDA by 4–5 times over the next four to five years, while maintaining stable net debt-to-equity levels.
It, however, flagged potential downside risks, including a slowdown in the Bangalore real estate market or weaker-than-expected leasing of annuity assets, which could impact the company’s growth trajectory.
Disclaimer: The views and recommendations expressed in this article are those of Nomura. This publication does not provide investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.
