Prestige Estates Projects (BSE:533274) - Share price, News & Analysis

Q: What is the Fair Price of 533274 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

533274 (₹388) is trading below our estimate of [[fair value]] (₹604.03)

533274 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

533274 Stock Overview

Prestige Estates Projects Limited, together with its subsidiaries, engages in the development and leasing of real estate properties in India.

Rewards

Trading at 35.8% below our estimate of its fair value

Revenue is forecast to grow 15.88% per year

Risk Analysis

Earnings are forecast to decline by an average of 7.3% per year for the next 3 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Prestige Estates Projects Competitors

Oberoi Realty

NSEI:OBEROIRLTY

₹269.8b

National Standard (India)

BSE:504882

₹116.9b

Sobha

BSE:532784

₹52.8b

Godrej Properties

NSEI:GODREJPROP

₹341.3b

Price History & Performance

Summary of all time highs, changes and price drops for Prestige Estates Projects
Historical stock prices
Current Share Price	₹388.00
52 Week High	₹553.40
52 Week Low	₹285.00
Beta	0.61
1 Month Change	-11.49%
3 Month Change	-22.92%
1 Year Change	36.24%
3 Year Change	41.81%
5 Year Change	37.66%
Change since IPO	101.51%

Shareholder Returns

	533274	IN Real Estate	IN Market
7D	-0.6%	2.2%	0.6%
1Y	36.2%	23.4%	-0.3%

Return vs Industry: 533274 exceeded the Indian Real Estate industry which returned 23.4% over the past year.

Return vs Market: 533274 exceeded the Indian Market which returned -0.2% over the past year.

Price Volatility

Is 533274's price volatile compared to industry and market?
533274 volatility
533274 Average Weekly Movement	5.3%
Real Estate Industry Average Movement	7.3%
Market Average Movement	6.8%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.4%

Stable Share Price: 533274 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 533274's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	7,750	Venkat Konanki	https://www.prestigeconstructions.com

Prestige Estates Projects Limited, together with its subsidiaries, engages in the development and leasing of real estate properties in India. It develops a range of residential projects, including townships, apartments, luxury villas, mansions, row houses, town homes, golf developments, and affordable houses; commercial projects comprising office spaces, built-to-suit campuses, special economic zones, and IT parks; and retail properties, such as malls. The company also develops and owns hospitality properties, which include hotels, resorts, spas, and service apartments.

Prestige Estates Projects Fundamentals Summary

How do Prestige Estates Projects's earnings and revenue compare to its market cap?
533274 fundamental statistics
Market Cap	₹155.53b
Earnings (TTM)	₹11.50b
Revenue (TTM)	₹63.90b

13.5x

P/E Ratio

2.4x

P/S Ratio

Is 533274 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
533274 income statement (TTM)
Revenue	₹63.90b
Cost of Revenue	₹33.53b
Gross Profit	₹30.37b
Other Expenses	₹18.87b
Earnings	₹11.50b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	28.69
Gross Margin	47.53%
Net Profit Margin	18.00%
Debt/Equity Ratio	68.2%

How did 533274 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

5%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 533274 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 533274?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 533274. This is calculated by dividing 533274's market cap by their current preferred multiple.
What is 533274's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹155.53b

533274 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.3x
Enterprise Value/EBITDA	13.9x
PEG Ratio	-1.9x

Price to Earnings Ratio vs Peers

How does 533274's PE Ratio compare to its peers?

533274 PE Ratio vs Peers

The above table shows the PE ratio for 533274 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	160.8x
OBEROIRLTY Oberoi Realty	25.8x	22.3%	₹269.8b
504882 National Standard (India)	475.2x	n/a	₹116.9b
532784 Sobha	45.2x	36.4%	₹52.8b
GODREJPROP Godrej Properties	96.9x	32.6%	₹341.3b
533274 Prestige Estates Projects	13.5x	-7.3%	₹155.5b

Forward PE

Price-To-Earnings vs Peers: 533274 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (160.8x).

Price to Earnings Ratio vs Industry

How does 533274's PE Ratio compare vs other companies in the IN Real Estate Industry?

Price-To-Earnings vs Industry: 533274 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the Indian Real Estate industry average (25.8x)

Price to Earnings Ratio vs Fair Ratio

What is 533274's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

533274 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.5x
Fair PE Ratio	23x

Price-To-Earnings vs Fair Ratio: 533274 is good value based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (23x).

Share Price vs Fair Value

What is the Fair Price of 533274 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 533274 (₹388) is trading below our estimate of fair value (₹604.03)

Significantly Below Fair Value: 533274 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 533274's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Prestige Estates Projects forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 533274's earnings are forecast to decline over the next 3 years (-7.3% per year).

Earnings vs Market: 533274's earnings are forecast to decline over the next 3 years (-7.3% per year).

High Growth Earnings: 533274's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 533274's revenue (15.9% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 533274's revenue (15.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 533274's Return on Equity is forecast to be low in 3 years time (11.2%).

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Past Performance

How has Prestige Estates Projects performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

35.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 533274 has a large one-off gain of ₹8.1B impacting its March 31 2022 financial results.

Growing Profit Margin: 533274's current net profit margins (18%) are lower than last year (20%).

Past Earnings Growth Analysis

Earnings Trend: 533274's earnings have grown significantly by 35.5% per year over the past 5 years.

Accelerating Growth: 533274's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 533274 had negative earnings growth (-21%) over the past year, making it difficult to compare to the Real Estate industry average (34.1%).

Return on Equity

High ROE: 533274's Return on Equity (12.7%) is considered low.

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Financial Health

How is Prestige Estates Projects's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 533274's short term assets (₹195.7B) exceed its short term liabilities (₹158.8B).

Long Term Liabilities: 533274's short term assets (₹195.7B) exceed its long term liabilities (₹50.2B).

Debt to Equity History and Analysis

Debt Level: 533274's net debt to equity ratio (45.5%) is considered high.

Reducing Debt: 533274's debt to equity ratio has reduced from 124.3% to 68.2% over the past 5 years.

Debt Coverage: 533274's debt is well covered by operating cash flow (32.9%).

Interest Coverage: 533274's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

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Dividend

What is Prestige Estates Projects's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.39%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 533274's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 533274's dividend (0.39%) is low compared to the top 25% of dividend payers in the Indian market (1.86%).

Stability and Growth of Payments

Stable Dividend: 533274's dividend payments have been volatile in the past 10 years.

Growing Dividend: 533274's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.2%), 533274's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 533274 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure

CEO

Venkat Konanki (43 yo)

4.92yrs

Tenure

₹11,950,000

Compensation

Mr. Venkata Narayana Konanki, also known as Venkat, has been Chief Executive Officer of Prestige Estates Projects Limited since August 14, 2017. Mr. Konanki served as the Chief Financial Officer and Execut...

Leadership Team

Experienced Management: 533274's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: 533274's board of directors are seasoned and experienced ( 12.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31