Prestige Estates shares have further upside on pan-India push, strong execution: Nomura

Shares of Prestige Estates Projects Limited, which have already gained nearly 40% in the past six months, are expected to extend their rally, according to global brokerage firm Nomura.

Nomura initiated coverage on the stock with a 'Buy' recommendation and a price target of ₹1,900.

The price target ascribed by Nomura, implies a potential upside of nearly 17% from Tuesday's closing levels.

The brokerage wrote in its note that Prestige Estates is "doing all the right things" — transforming into a pan-India real estate player while simultaneously building a strong annuity and hotel portfolio.

Nomura expects pre-sales in FY26F to reach ₹29,000 crore, which represents a growth of more than 70% year-on-year, compared with management's guidance of ₹26,000 crore. The brokerage also sees upside risks to this estimate.

The brokerage added that Prestige's superior execution capabilities should help scale up its annuity and hotel EBITDA by four to five times over the next four to five years, while the company's net debt-to-equity ratio is expected to remain stable.

Downside risks, as per the brokerage, include a slowdown in the Bengaluru real estate market or weaker-than-expected leasing of annuity assets could weigh on the company's growth prospects.

Shares of Prestige Estates Projects settled 1.93% higher on Tuesday at ₹1,624.90. The stock is down 2% so far in 2025, while over the last six months, it has risen nearly 50%.