India's Prestige Estates Projects posts higher Q2 profit on strong housing demand

DLF

07/11/2023 14:43

BENGALURU, Nov 7 (Reuters) - India's Prestige Estates
Projects  PREG.NS  reported a more than six-fold jump in
second-quarter profit on Tuesday, aided by a buoyant housing
demand.
    The real estate developer's consolidated net profit rose to
8.51 billion Indian rupees ($102.22 million) in the quarter
ended Sept. 30, from 1.41 billion rupees reported a year
earlier.
    It launched five residential projects in the quarter, with
sales surging 102% year-on-year to 70.93 billion rupees during
the quarter. 
    For further results highlights, click: (nFWN3C82RY)
    
    KEY CONTEXT
    Real estate companies have benefited from improved home
demand in urban areas as consumer confidence drove purchases in
the sector despite high borrowing rates. 
    Peers Godrej Properties  GODR.NS  and DLF  DLF.NS  reported
higher quarterly profits for the period, while Sobha  SOBH.NS 
reported a decline in profit as higher expenses offset strong
demand for luxury apartments.
    
    PEER COMPARISON 
    
                                   Valuation (next 12  Estimates (next 12 months)         Analysts' sentiment
                                        months)                                     
                        RIC          PE    EV/EBITDA   Revenue    Profit growth     Mean     # of      Stock to
                                                                                    rating*  analysts  price
                                                       growth                                          target**
 Prestige Estates        PREG.NS    38.17       14.70    15.55         19.76        Buy            16      1.15
 Projects                                                                                              
 Sobha                   SOBH.NS    21.23       12.88    16.21         84.13        Strong         12      0.38
                                                                                    Buy                
 Godrej Properties       GODR.NS    55.16       81.57    27.31         32.09        Hold           18      1.12
 DLF                     DLF.NS     46.62       56.12    17.31         30.59        Buy            16      1.05
 * Mean of analysts' ratings standardised to a scale of Strong
Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock is last close to analysts' mean price
target; a ratio above 1 means the stock is trading above the PT
    
    JULY-SEPT STOCK PERFORMANCE
    
    
 -- All data from LSEG
 -- $1 = 83.2516 Indian rupees
    



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 (Reporting by Anisha Ajith and Dimpal Gulwani in Bengaluru;
Editing by Shweta Agarwal)
 ((anisha.ajith@thomsonreuters.com;))