Prestige Estates Projects

Research evidence excerpt

Prestige Estates Projects

Global Markets Research

Prestige Estates Projects PREG.INx PEPL IN 31 July 2026

EQUITY: PROPERTY

RatingReiterate Buy and TP of INR1,900 Remains Buy

Target priceOn track to meet FY27E pre-sales guidance; net debt Remains INR 1,900

growth monitorable but not alarming

Closing price INR 1,595 30 July 2026Action: Reiterate Buy and TP of INR1,900

PEPL held its earnings call on 30 July, where we believe two questions were effectively answered: 1) the

Implied upside +19.1%launch pipeline remains substantial to achieve 15-20% pre-sales growth in FY27F; and 2) net debt growth

in FY27F should be moderate thanks to robust collection expectation from the new launches. We maintain Market Cap (USD mn) 7,179.3

our Buy rating, as we believe: 1) PEPL’s pan-India growth strategy is superior vs peers, and strong scale- ADT (USD mn) 15.6

up – particularly in Mumbai and Delhi – is likely; 2) strong execution should help scale PEPL’s annuity and

hotel EBITDA 4-5x over the next 4-5 years; and 3) the stock trades at a 39% premium to its NAV (vs GPL’

s [GPL IN, Neutral] 77%). Relative performance chart

Management maintains FY27E pre-sales growth guidance of 15-20% y-y

Management expects FY27E pre-sales at ~INR350bn. The company did sales of INR65bn in 1Q. We

expect ~INR90-100bn of sustenance sales for balance 9MFY27F from its inventory of INR245bn at end-

1QFY27. This would imply the company has to do ~INR200bn of sales from its new launches for the

balance 9MFY27F. Given sales from new launches are at ~35-40%, we believe it would imply launch

requirement of INR450-500bn for the balance of 9MFY27F. Overall, for FY27E, the company expects

INR570bn of new project launches, of which it has launched INR121bn as of 1QFY27. The company