Motilal Oswal Financial Services has reiterated its 'Buy' rating on Prestige Estates Projects Ltd., anticipating a significant upside for the real estate developer's stock. The brokerage firm has set a target price of Rs 1,830, which suggests a potential gain of approximately 29% from the stock's recent trading price of Rs 1,422 on Tuesday, September 29, 2026.
Strong Project Pipeline Fuels Optimism
The positive outlook from Motilal Oswal is primarily driven by Prestige Estates' robust project launch pipeline, active business development initiatives, and enhanced growth visibility. Analysts expect the company to achieve healthy pre-sales growth, supported by both new project introductions and its existing inventory.
In the second quarter of FY27 alone, Prestige Estates launched three major projects with a combined Gross Development Value (GDV) of Rs 4,000 crore. These include:
- Prestige Parklane in Bengaluru (GDV: Rs 1,750 crore)
- Prestige Palm Court in Chennai (GDV: Rs 1,220 crore)
- Garden Breeze at TPC Sarjapur in Bengaluru (GDV: Rs 1,050 crore)
These Q2 launches contribute to a total GDV of Rs 16,200 crore from projects launched in the first half of FY27. Looking ahead, the company plans an ambitious rollout of 23 projects throughout FY27, encompassing a developable area of 57.1 million sq ft and an aggregate GDV of Rs 57,300 crore.
Encouraging Market Response and Business Expansion
Motilal Oswal's channel checks indicate an encouraging response to the recently launched Q2 projects, with strong expression-of-interest leading to healthy sales conversions. The brokerage anticipates robust bookings across these new projects, complemented by Prestige Estates' substantial existing inventory, valued at approximately Rs 24,500 crore as of Q1 FY27, which is also expected to bolster pre-sales.
For the second quarter, Motilal Oswal projects pre-sales to range between Rs 6,500 crore and Rs 7,000 crore, representing a 10-15% increase year-on-year.
Strategic Business Development
The company's proactive business development strategy further underpins the positive forecast. In the first quarter, Prestige Estates added three new projects with a combined GDV of Rs 17,800 crore. This momentum continued into the second quarter, with business development deals worth around Rs 11,600 crore announced in the key Mumbai Metropolitan Region and National Capital Region.
Motilal Oswal expects these strategic additions to significantly improve growth visibility, maintaining its estimate of a 14% Compound Annual Growth Rate (CAGR) in pre-sales, reaching approximately Rs 38,800 crore over the FY26-28 period.