Shares of Prestige Estates Projects fell over 4% following a downgrade by Morgan Stanley from Overweight to Underweight (UW), with the target price revised down to ₹1,510 from ₹1,690.
Despite impressive 63% pre-sales growth in FY24, the brokerage cut its FY25 pre-sales growth estimate to 9% YoY, down from the previous 28%, citing weak sales performance in the first half of FY25, with only 29% of its full-year target achieved.
Morgan Stanley’s downgrade also highlights concerns over the company’s high capital expenditure needs for its income-producing (IP) business and weaker pre-sales momentum compared to industry peers. Prestige’s near-term outlook remains challenged, with other real estate players expected to outperform.
As of 9:24 am, Prestige Estates Projects shares were trading 4.64% lower at Rs 1,627.05 on the NSE.
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