⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PRESTIGE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | PRESTIGE | Market Cap | 64,671 Cr. | Current Price | 1,500 ₹ | High / Low | 1,814 ₹ |
| Stock P/E | 672 | Book Value | 274 ₹ | Dividend Yield | 0.12 % | ROCE | 4.35 % |
| ROE | 1.44 % | Face Value | 10.0 ₹ | DMA 50 | 1,559 ₹ | DMA 200 | 1,578 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.28 % | PAT Qtr | 45.8 Cr. | PAT Prev Qtr | 20.1 Cr. |
| RSI | 47.9 | MACD | -45.8 | Volume | 9,62,937 | Avg Vol 1Wk | 11,40,266 |
| Low price | 1,048 ₹ | High price | 1,814 ₹ | PEG Ratio | -19.7 | Debt to equity | 0.55 |
| 52w Index | 59.0 % | Qtr Profit Var | -12.0 % | EPS | 2.23 ₹ | Industry PE | 30.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹45.8 Cr, up from ₹20.1 Cr sequentially, but YoY profit variation shows -12% decline. EPS at ₹2.23 is weak relative to market cap.
- Margins: ROE at 1.44% and ROCE at 4.35% reflect poor efficiency and weak profitability.
- Debt Ratios: Debt-to-equity at 0.55 is moderate, manageable but not negligible.
- Cash Flows: Cash flows likely under pressure due to weak earnings despite moderate leverage.
💹 Valuation Indicators
- P/E Ratio: 672, extremely high compared to industry average of 30.2, suggesting severe overvaluation.
- P/B Ratio: Current price ₹1,500 vs. book value ₹274 → ~5.47x, expensive relative to assets.
- PEG Ratio: -19.7, negative, reflecting poor growth-adjusted valuation.
- Intrinsic Value: Current valuation far exceeds intrinsic worth, offering no margin of safety.
🏢 Business Model & Competitive Advantage
- Prestige Estates operates in real estate development, focusing on residential, commercial, and retail projects.
- Competitive advantage lies in brand recognition and diversified portfolio across geographies.
- However, weak profitability and stretched valuation undermine overall health.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer accumulation range between ₹1,050 – ₹1,150, closer to 52-week low and below DMA50.
- Long-Term Holding: Risky at current valuations; suitable only for high-risk investors betting on real estate sector recovery. Conservative investors should wait for earnings improvement and valuation correction.
✅ Positive
- Sequential PAT growth from ₹20.1 Cr to ₹45.8 Cr.
- DII holding increased (+0.28%), showing domestic institutional support.
- Stock has delivered 59% gain over 52 weeks.
⚠️ Limitation
- Extremely high P/E ratio of 672 compared to industry average.
- Weak EPS at ₹2.23 despite large market cap.
- Dividend yield of only 0.12% offers negligible income to investors.
📉 Company Negative News
- Profit variation of -12% highlights earnings instability.
- FII holding decreased (-0.02%), showing reduced foreign investor confidence.
- Stock trading below DMA200 indicates weak momentum.
📈 Company Positive News
- Sequential PAT improvement indicates short-term recovery.
- DII support increased (+0.28%).
- Strong 52-week performance with 59% gain.
🏭 Industry
- Real estate sector trades at industry PE of 30.2, far below Prestige’s valuation.
- Sector growth supported by urbanization and housing demand, but cyclical risks remain.
🔎 Conclusion
- Prestige Estates shows strong brand presence but weak fundamentals with poor profitability and extreme valuation.
- Current levels are unattractive for fresh entry; better suited for speculative investors.
- Conservative investors should wait for correction near ₹1,050 – ₹1,150 before considering entry.
I can also prepare a comparative HTML snapshot of Prestige versus DLF to highlight relative valuation and profitability differences in the real estate sector.