Prestige Estates Projects Ltd shares surged 3% in early trade after Morgan Stanley reaffirmed its ‘Overweight’ rating on the stock. As of 10:32 AM, the shares were trading 2.96% higher at Rs 1,698.80.
The brokerage has set a revised target price of ₹1,700, citing stronger-than-expected Q1 presales and a robust pipeline of upcoming project launches.
According to Morgan Stanley, Prestige’s Q1 presales outperformed estimates and closely aligned with management guidance, reflecting solid demand for its newly launched projects. The company’s effective inventory monetisation strategy has helped drive faster bookings and reduce inventory risks in core markets such as Bengaluru, Mumbai, and NCR.
The brokerage also highlighted that Prestige Estates is well on track to achieve its full-year presales target, thanks to a diverse launch portfolio covering various geographies and housing segments. Its strategic focus on both mid-income and luxury housing provides a cushion against regional and price-point fluctuations, offering stability amid market cycles.
A key near-term trigger for the stock, as per Morgan Stanley, is the anticipated IPO of Prestige’s hotel business. The planned listing, alongside the monetisation of annuity assets, is expected to unlock significant shareholder value while addressing leverage concerns. These steps are seen as critical to improving return ratios and overall capital structure.
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