Shares of Prestige Estates Projects Ltd surged by 4.97% to a new high of Rs 700.95 each on Monday, following the release of its Q2 FY24 business update. The company reported record-breaking sales for H1 FY24, which led to a significant increase in the stock's value from Rs 679.55 in early trading.
The company's market cap stood at Rs 27,282.64 crore, reflecting the strong investor interest in the firm. This positive response was driven by robust residential property demand, resulting in a two-fold jump in sales bookings at Rs 7,092 crore in Q2. The company also reported sales of Rs 7,092.6 crore for the period, with customer collections rising by 1% to Rs 2,639.8 crore and sales bookings increasing 50% YoY to 6.84 million square feet.
InvestingPro data shows that Prestige Estates Projects Ltd has been a prominent player in the Real Estate Management & Development industry, with a strong return over the last three months. This aligns with the company's significant return over the last week, which is further supported by the large price uptick over the last six months. This information, provided by InvestingPro, suggests a promising future for the company.
In light of these strong results, several market players including Anil Singhvi and brokerages CLSA and Systematix recommended buying shares of Prestige Estates Projects Ltd. They cited the company's strong execution track record and sizeable presence across various sectors as reasons for their endorsement. Existing investors were also advised to hold their shares.
In addition to this, there was mention of a potential revision of pre-sales guidance for FY24 due to the company's performance. In 2023, Prestige Estates Projects Ltd's shares gained nearly 47%, significantly outperforming the Nifty50's rise of over 8.1%.
Brokerages CLSA and Systematix have set target prices at Rs 750 and Rs 699 respectively for Prestige Estates Projects Ltd's shares, indicating confidence in the company's continued growth potential.
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