'Bengaluru can still deliver': Prestige up 7% on Q2 update, Nuvama says Buy stock

Prestige Estates Projects Ltd saw its shares rallying 7 per cent in Thursday's trade after the realtor recorded sales of Rs 6,017.30 crore in Q2, marking a 50 per cent year-on-year growth, driven by robust demand across markets and segments. Sales volume for the quarter stood at 4.42 million square feet, up 47 per cent year-on-year, translating to 2,069 units sold. 

Nuvama in a note on Prestige Estates Projects said Bengaluru can still deliver volume growth, even as concerns remain around other markets. Data showed Bengaluru accounted for 40 per cent of Prestige's sales mix in Q2 and 27 per cent in H1. NCR accounted for 18 per cent of Q2 sales mix, but 45 per cent of H1 sales mix. 

Nuvama maintained ‘Buy’ on the stock with a revised target of Rs 1,966 compared with Rs 2,009 earlier, as it rolled forward its valuation estimates to Q2FY28.

Another brokerage, Antique Stock Broking said Prestige is well-positioned to capitalize on the sector’s sustained momentum. We expect PEPL to surpass its guidance easily. This brokerage maintained 'Buy' rating on the stock with a target price of Rs 2,195, valuing its residential segment at an embedded EV/Ebitda multiple of 8 timeson 1HFY28E, and assign a 52 per cent premium to NAV.

"We value the hospitality projects at 25 times EV/Ebitdaand rental assets at 7 per cent cap rate. Pecking order of residential real estate: Sobha, ABREL, Brigade, Prestige, GPL, ARVSMART, DLF, Oberoi, Lodha, KPDL, and SRIN. Key monitorable: Launches and net debt," Antique said.

On Thursday, Prestige Estates rose 6.73 per cent to hit a high of Rs 1,615.50 on BSE, taking its six-month rally to 44.83 per cent. The stock is still down 6 per cent year-to-date. Nuvama said Prestige delivered two projects spanning 2.5msf in Bengaluru during the quarter, down 17 per cent YoY or 54 per cent QoQ. H1FY26 completions stood at 8msf against 3msf in FY25. Collections during the quarter came in at Rs 4210 crore, up 54 per cent YoY but down 7 per cent QoQ. H1FY26 collections at Rs 8,730 crore were up 54 per cent YoY, its highest-ever H1 collections.

"Average realisation for apartments, villas and commercial properties rose 8 percent YoY to Rs 14,906/sft in Q2FY26 while plotted sales logged average realisation of Rs 9,510/sft (up 43 per cent YoY). Gross leasing in the office segment stood at 2.3msf in Q2FY26 and ~3.5msf in H1FY26 (~4.1msf in FY25). The office portfolio’s occupancy stood at 93.4 per cent with exit rental at Rs 820 crore," Nuvama said.

Nuvama said consumption in the malls in Q2FY26 stood at Rs 620 crore and Rs 1210 crore in H1FY26. The retail portfolio enjoyed occupancy of 99 per cent with exit rentals of Rs 270 crore. Footfalls reached 4.8 million during the quarter.