The Prestige Estate Groups Limited is part of the Prestige Group and is one of the leading real estate developers in India. The company develops real estate that spans all asset classes. The company was taken public in 2010.Market Capitalisation
As of the close of the third week of August 2018, the market capitalisation of Prestige Estates was about Rs.9,376 crore.
Prestige Estate Group’s Wealth and Recent Performance
From the audited financial results for the quarter ending March 2018, the following can be observed:
- Total income from operations grew from Rs.792.8 crore in the previous quarter to Rs.1,039.7 crore in the quarter ending March 2018.
- Total expenses increased from Rs.732.1 crore in the previous quarter to Rs.974.3 crore in the quarter ending March 2018.
- Profit before tax increased from Rs.60.7 crore in the previous quarter to Rs.65.4 crore in the quarter ending March 2018.
- Net profit dropped from Rs.60.9 crore in the previous quarter to Rs.57.2 crore in the quarter ending March 2018.
- Total assets increased from Rs.12,376.6 crore in the previous financial year ending March 2017 to Rs.13,846 crore in the financial year ending March 2018.
Prestige Estate Group’s Stock Trends in 2018
- The stock opened at about Rs.315 in January 2018. The stock rose for the first two weeks of the month with a peak of about Rs.345. Then the stock declined in value. By the end of the month, the stock closed at about Rs.322. While this was an increase from the price at the beginning of the month, it was still lower than the peak value for the month.
- The stock opened at about Rs.327 in February 2018. The stock initially dipped below Rs.300 but recovered later. The stock did not go below Rs.300 that month after recovering. The stock closed for the month at about Rs.335.
- The stock dipped in March 2018. The price went below Rs.300 during the course of the month. The stock closed for the month at about Rs.291.
- The stock appeared to recover in April 2018 but it kept varying in price, sometimes over Rs.300 and sometimes just below Rs.300. The final price for the month was about Rs.305.
- The stock took a definite downward trend in May 2018. The final price for the month was about Rs.248.
- The stock dipped further in the initial days of June 2018 with a low of about Rs.228 but recovered to close for the month at about Rs.270.
- In July 2018, the stock began trading at about Rs.278 and held steady for close to two weeks. The stock dipped towards the end of the second week. The stock recovered a little after that to close for the month at about Rs.253.
Prestige Estate Group’s Stock Trends in 2016 and 2017
- In January 2016, the stock began trading at about Rs.194. The stock held steady till the close of the second week of January when it dipped. The lowest price for the month was about Rs.174. The stock then recovered to close for the month at about Rs.185. The stock opened at about Rs.188 in February 2018 but dived soon after. The stock did not recover for the rest of the month. The final price for the month was about Rs.149. There was another sharp decline in March 2016 with the price going to Rs.130 but the stock recovered later. The stock closed for the month at about Rs.172. An interim 12% dividend was announced on 30 March 2016.
- The stock began at about Rs.172 in April 2016, and underwent major fluctuations to close for the month at about Rs.168. The stock appeared to pick up a little in May 2016 with the price going up to Rs.177 at the beginning of the month but dipped again. After numerous fluctuations, the stock closed at about Rs.185 at the end of the month. The price held steady in June 2016 with no major dips or increases in price.
- The stock dipped a little in July 2016 but closed for the month at about Rs.185. The price rose over Rs.200 in the initial weeks of August 2016 but dipped again later to close at about Rs.186. The price fluctuated a lot in September 2016 with the stock going over Rs.200 twice and dipping below the same again. The final price for the month was about Rs.192.
- There was a brief spike in prices in October 2016 but the price dipped again to close at about Rs.194 at the end of the month. The stock plunged even further in November 2016 to close at about Rs.152 at the end of the month. The stock rallied a little in December 2016 to close at about Rs.170 but did not go over the Rs.200 mark.
The stock began trading at about Rs.169 in January 2017. The final price in December 2017 was about Rs.318. The stock mostly rose through the year.
- While there was a brief increase in prices, the stock closed at about Rs.165 in January 2017. The stock did not perform much in February 2017 either and closed at about Rs.169. March 2017 marked the beginning of the true spike in the price of the share. The stock went past the Rs.200 mark and closed at about Rs.217 at the end of the month.
- In April 2017, the stock breached the Rs.250 mark. The high for the month was about Rs.265 but the stock dipped after to close for the month at about Rs.235. Throughout the month of May 2017, the stock did not vary much in price and closed for the month at about Rs.241. In June 2017, the stock once again rose over Rs.250 and stayed above that mark for most of the month. Barring a brief dip, the stock closed for the month at about Rs.253.
- The stock remained over Rs.250 for most of July 2017. The high for the month was about Rs.282. But the stock dipped later and closed for the month at about Rs.268. The stock remained at over Rs.250 throughout August 2017 and closed for the month at about Rs.273. In September 2017 too, the stock did not go below Rs.270 and the final price for the month was about Rs.273. A final 12% dividend was announced on 19 September 2017.
- During the last weeks of October 2017, the stock rose over Rs.300. The final price for the month was about Rs.304. In November again, the stock dipped below Rs.300 but rallied in the last week to close for the month at about Rs.330. The stock dipped in December 2017, with a brief stint below Rs.300 but recovered to close for the month at about Rs.318.
Should You Invest in Prestige Estate Groups?
- The company is one of the leading real estate developers in the country.
- The brand name carries a lot of value because of the trust associated with it.
- The company has completed 210 projects so far.
- There are 53 more projects that are in progress and the total area covered by those projects will be 54 million square feet.
- In addition, there are 35 more upcoming projects that the company is involved in which will cover about 48 million square feet of space.
- All of these indicate the scope and the scale of the projects undertaken by Prestige and the level of trust the property buyers have in the company.
- Prestige is not only involved in real estate but has also branched out into other sectors, namely, residential, commercial, retail, leisure, and hospitality.
- The company has a strong presence in South Indian cities like Chennai, Kochi, Hyderabad, Mangalore, Mysore, and Goa.
- Prestige has launched a partnership with the Rattha Group.
- The company also caters to the luxury segment of the market through its luxury villa offerings - Prestige Silver Springs.
- The company was also involved in building a luxury mall in Bangalore.
- It has received a number of awards for innovation and excellence.
- All of these indicate that the company would be good bet but it would be best to invest after personal research that takes into account other financial commitments and personal risk appetites.
The company has completed 210 projects so far. The total area covered by all its projects so far is about 80 million square feet. In addition to this, there are a number of projects that are in progress. The company has also diversified into other business such as interior design, men’s formal wear, and leisure and hospitality segments.
History of the Company
The Prestige Group’s chairman is Irfan Razack. Prestige Estates Projects Limited was begun in 1985. The Prestige Estates Projects company is the second-largest company listed real estate company in India. The company competes with DLF in the real estate sector. The company began by expanding in Bangalore, Chennai, and Hyderabad before establishing its presence all over India. The company began with mid-income housing and then expanded to luxury projects. In 2010, when the company required more capital, it went public. From 2010 to 2015, the company’s market capitalisation grew from Rs.2,000 crore to about Rs.10,000 crore. The share price of the company rose 30% over five years since the IPO. The company also diversified into men’s fashion wear through Razack Sattar, Irfan’s father in 1957. At present, the store is known as Prestige Fashions and there is one store each in Bangalore and Chennai.
Management of the Company
The management of the company comprises the following individuals:
Venkat K. Narayan - CEO
V.V.B.S. Sarma - CFO
The board of directors includes:
Jagdeesh K. Reddy
Noor Ahmed Jaffer
Dr. Pangal Ranganath Nayak
The executive directors of the company include:
Omer Bin Jung
Lt. Col. Milan Khurana
The present CEO of the company is Venkat K. Narayan. He has been part of Prestige for over 14 years, during which he served as CFO for nine years. He is a law graduate, chartered secretary, UK, cost accountant, company secretary, and a chartered accountant. He is responsible for the successful initial public offering (IPO) of Prestige Shares on stock exchanges in India. He is also responsible for successful restructuring of the company. In addition, he introduced private equity investments and joint ventures while also furthering a number of strategic initiatives in the company. In his capacity as CEO, he oversees corporate finance and investor relations.
Prestige Estate Groups Listing in NSE, BSE, and Other Indices
The company is listed under the following codes:
IND: Construction and Contracting
ISIN Code: INE811K01011
The company is part of indices like, Nifty 200, Nifty Full Midcap 100, Nifty Realty, S&P BSE Realty, S&P BSE 500, S&P BSE Allcap, and S&P BSE 150 MidCap Index among other indices.
In addition to the BSE and the NSE, the stock is listed on MCX Stock Exchange.
The corporate office of the company is located at the following address:
Prestige Estates Projects Limited, The Falcon House, No. 1, Main Guard Cross Road, Bangalore - 560 001, Karnataka, India
Telephone Number: +91 80 2559 1080
Fax: +91 80 2559 1945
Toll-free number: 1800 313 0080
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