Multibagger real estate stock rose 100% in six months; what’s next?

Shares of Prestige Estates Ltd have delivered multibagger returns in the last six months. The real estate stock, which closed at Rs 574.65 on June 16 this year hit a high of Rs 1149.55 in the current session, clocking 100% gains during the period. In comparison, the BSE 500 index rose 17.80% during the period. 

Prestige Estates shares hit a record high of Rs 1231.95 on December 14, 2023. They fell to a 52-week low of Rs 391.30 on February 27, 2023. Prestige Estates stock rose to Rs 1149.55 today against the previous close of Rs 1139.05 on BSE.  Total 0.11 lakh shares of the firm changed hands amounting to a turnover of Rs 1.31 crore. Market cap of Prestige Estates rose to Rs 45,816 crore on BSE.  Prestige Estates shares have a one-year beta of 0.2, indicating very low volatility during the period. 

In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 65.3, signaling it's trading neither in the overbought nor in the oversold zone. 

Prestige Estates stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a decent rally in the last 3 months from Rs 600 levels to touch the peak level of Rs 1230 and has been consolidating for quite some time forming a Pennant pattern on the daily chart to indicate strength sustaining. Once a decisive breach above Rs 1160 zone is confirmed, it would trigger for a breakout and further rise is anticipated till next targets of Rs 1320-1380 levels in the coming days. At the same time, only a decisive breach below the Rs 1080 zone shall weaken the bias and expect for further slide with next major support visible at around Rs 960 zone."

Abhijeet from Tips2trades said, "Prestige Estates looks overbought and bearish on the Daily charts with strong resistance at Rs 1232. Investors should book profits at current levels as a daily close below the support of Rs 1062 could lead to Rs 905 in the near term."

The real estate firm reported a six-fold rise in the September quarter profit.

The realty firm logged a net profit of Rs 850.9 crore in Q2 against Rs 140.7 crore in the corresponding quarter of the previous year. Total income rose to Rs 3,256 crore in Q2 from Rs 1,474.7 crore in the corresponding period of the previous year. 

Revenue from operations in Q2 rose to Rs 2236.4 crore against Rs 1427.7 crore a year ago. Profit before tax climbed 452% year-on-year to Rs 1166.7 crore in Q2 against  Rs 211.1 crore in the corresponding quarter of the previous fiscal. 

During the April-September period of this fiscal, net profit rose to Rs 1,117.8 crore from Rs 345.6 crore in the year-ago period. Total income climbed to Rs 5,222.3 crore in the first six months of this fiscal from Rs 3,486.5 crore in the corresponding period of the last financial year. 

Prestige Estates is one of the leading real estate developers in the country.

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as an investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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