Shares of Prestige Estates Projects Ltd surged by 5% on Tuesday following the announcement of a landmark project approval. The company has secured the Real Estate Regulatory Authority (RERA) approval for its ambitious new development, which has an estimated Gross Development Value (GDV) of Rs.9,000 crore.
Stock Price Jumps, Reflecting Strong Investor Sentiment
On Wednesday, the company’s stock hit an intra-day high of Rs.1,444.90, climbing 4.7% from its previous closing price of Rs.1,380. However, the stock later retreated and closed at Rs.1,366.10, showing the typical ebb and flow of investor sentiment. Despite the slight pullback, the long-term performance of Prestige Estates has been impressive, with the stock delivering over 700% returns over the last five years.
Such sharp fluctuations are a reminder of the inherent volatility in the real estate market, where good news can spark excitement, but investor caution still holds sway. For Prestige Estates, the announcement of the RERA approval is more than just a momentary spike—it could signal the start of a new era for the company in the National Capital Region (NCR).
A Major Leap into NCR’s Residential Market
This approval marks the company’s grand entry into the NCR residential market with its project ‘The Prestige City – Indirapuram.’ The first phase of the project, featuring Oakwood and Mulberry towers, has already begun marketing and will carry a combined GDV of Rs.9,000 crore. This development is set to be one of the largest real estate launches in the NCR region.
The second phase, named Mayflower, is already in the works, with projections pushing the project’s total GDV to around Rs.12,000 crore. This bold expansion into the NCR area shows the company’s confidence in the growth potential of this market. The Prestige City – Indirapuram project embodies the company’s commitment to quality and integrated living, offering residential units alongside retail and leisure facilities.
Key Project Highlights:
Location: Indirapuram, NCR
Total GDV for Phase 1: Rs.9,000 Crore
Expected GDV for Phase 2 (Mayflower): Rs.12,000 Crore
Phases: Oakwood and Mulberry Towers (Phase 1); Mayflower (Phase 2)
Ambitious Vision for the Future
In a statement, Mr. Irfan Razack, the Chairman and Managing Director of Prestige Group, expressed his excitement about entering the NCR market. “We are thrilled to make our debut in the vibrant NCR residential market with The Prestige City, Indirapuram. This project embodies the scale, ambition, and integrated lifestyle that Prestige stands for. It is only the beginning — we are deeply committed to expanding our presence in NCR, and The Prestige City – Indirapuram is the first of many more landmark developments we have planned for this dynamic market.”
His words clearly reflect the company’s long-term strategy for NCR. Prestige Estates is no longer just a Bangalore-centric player. They are stepping into one of the largest and most competitive property markets in India, with their sights set on more than just a single development.
A Diversified Portfolio and Strong Network
Prestige Estates Projects Ltd operates a diverse real estate portfolio across several segments, including residential, commercial, retail, hospitality, and property management services. The company’s extensive reach in major Indian cities—Bangalore, Chennai, Hyderabad, and more—further complements its new initiatives in the NCR region. Additionally, Prestige has made inroads into the Dubai market, broadening its international footprint.
The company’s adaptability and presence in various real estate segments and locations give it a well-rounded, robust business model. This diversified approach helps mitigate risks associated with fluctuations in any one sector or region.
Financials and Market Outlook
For Q3 FY25, the company’s revenue was reported at Rs.1,654 crore, showing a decline of 7.91% compared to Rs.1,796 crore in the same quarter last year. The dip in revenue may seem concerning, but it’s essential to understand that Prestige Estates is investing heavily in long-term projects like ‘The Prestige City – Indirapuram.’ These kinds of projects often take time to mature, but once they hit their stride, they can drive significant returns.
Net profit for the same period plummeted 80.6%, from Rs.165 crore to Rs.32 crore. However, this drop in profit could be attributed to the ongoing costs of developing large-scale projects. The company’s long-term strategy of investing in high-value assets will likely pay off once these developments are completed and begin generating substantial revenue.
Key Financial Metrics (Q3 FY25):
Revenue: Rs.1,654 crore (-7.91% YoY)
Net Profit: Rs.32 crore (-80.6% YoY)
ROCE: 8.83%
ROE: 4.11%
P/E Ratio: 97.36 (higher than the industry average of 72.18)
Despite the recent dip in profits, Prestige Estates continues to show healthy liquidity ratios. The company maintains a current ratio of 1.67, indicating solid short-term financial stability, and a debt-to-equity ratio of 0.75, which suggests a manageable level of debt.
A Look at the Shareholding Pattern
As of March 2025, the company’s shareholding structure reveals that the promoters hold a controlling stake of 60.95%. Foreign Institutional Investors (FIIs) have a 17.08% stake, with the Government of Singapore holding a notable 1.88%. Domestic Institutional Investors make up 19.23%, while retail investors hold the remaining 2.74%.
This shareholding structure demonstrates the confidence institutional investors have in the company, with the Government of Singapore’s stake adding a layer of credibility.
