Morgan Stanley has reiterated an ‘Overweight’ call on Prestige Estates Projects Ltd, raising confidence in the company’s ability to deliver on its ambitious growth targets for FY26. The brokerage has set a target price of ₹1,700, based on stronger-than-expected presales in Q1 and a robust launch pipeline for the remainder of the fiscal year.
According to the note, Prestige’s Q1 presales beat estimates, aligning closely with management guidance and reflecting the strong market response to its recent project launches. The company’s inventory monetisation strategy has paid off, helping accelerate bookings and easing inventory risk in key markets such as Bengaluru, Mumbai, and NCR.
Morgan Stanley also points out that Prestige Estates appears well-positioned to meet its full-year presales target, owing to a diverse launch pipeline across geographies and price bands. The management’s focus on mid-income as well as luxury housing segments allows the developer to hedge against regional and price-point cyclicality.
A major catalyst in the coming months, according to the brokerage, is the planned listing of Prestige’s hotel business, which could unlock value and reduce leverage concerns. The monetisation of annuity assets and progress on hospitality IPO will be key to improving return ratios and capital structure, the note said.
With India’s real estate sector seeing continued demand resilience and top-tier developers gaining market share, Morgan Stanley believes Prestige Estates offers an attractive mix of scale, financial discipline, and growth visibility.
