Prestige Estates Projects, one of the country's leading real estate developers, released its operational performance for the September quarter-ending (Q2FY24) and for H1FY24 on October 6.
The company registered a record-breaking highest sales of ₹1,10,073 million in H1FY24, a notable 69% increase compared to the previous year. Collections for the same period reached ₹53,806 million, marking a 13% year-on-year growth.
These impressive figures can be attributed to the sale of 10.7 million square feet of volume, a 30% YoY increase, at an average rate of ₹10,338 per square feet for apartments and villas and ₹4,825 per square feet for plot sales. The company successfully sold 5,935 units during the first half of the current fiscal year.
In Q2FY24, the company registered sales of ₹70,926 million (up by 102% YoY) and quarterly collections of ₹26,398 million (up by 1% YoY). The sales during this period are attributed to 6.84 million square feet (up by 50% YoY) of volume, with an average realisation of ₹10,369 square feet (up by 29% YoY) for apartments and villas.
It recorded the average realisation of ₹6,753 square feet (up by 62% YoY) for plot sales The company successfully sold 3,659 units during Q2FY24.
Overall, for H1FY24, the company launched projects spanning 16.20 million square feet. Additionally, the total completions for the first half of the fiscal year reached 8.11 million square feet, as per the company's regulatory filing.
Expressing his views on the performance," Mr Venkat K Narayana, Chief Executive Officer, Prestige Group, said, "This quarter has been marked by significant launches, including Prestige Park Grove and Prestige Serenity Shores, which received overwhelming responses, contributing to ₹5000+ crore of the quarterly sales. Mumbai continues to perform well, garnering formidable sales."
"Another feather in our cap was the inauguration of Kochi's iconic new landmark, the Forum Thomsun Mall. Our strong sales, impressive collections, and successful project launches and completions demonstrate our tenacity and commitment to excellence and growth," he added.
Following this positive development, the stock got off to a great start in Monday's trading session, opening at ₹697 per share, a notable increase from the previous closing price of ₹667.70. Subsequently, it surged further during early trading, reaching an all-time high of ₹700.95 per share, up by 5%.
The company's shares have demonstrated impressive performance, delivering a return of nearly 44.65% over the last year, a remarkable 163% in the past three years, and a substantial 246% growth over the past five years.
HDFC Securities, a leading domestic brokerage firm, has reiterated its optimistic stance on the stock in its latest report and maintained a 'buy' rating. It has set a target price of ₹786 apiece.
The brokerage stated that the housing market may face some challenges due to inflation and potential interest rate hikes, which could dampen short-term demand. However, it believes that the long-term momentum of housing demand remains intact, as these challenges are expected to be temporary in nature.
16 analysts polled by MintGenie on average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before taking any investment decisions.
