1. At a Glance
India’s real estate don from Bengaluru is building homes, malls, offices—and hype. But with P/E of 159 and ROE of 3.5%, Prestige looks more like a luxury flat—lavish exterior, questionable ROI.
2. Introduction with Hook
Prestige is what you buy with EMI dreams and sell with GST nightmares. The company builds everything: homes, malls, hotels, even warehouses. But the numbers? Let’s say they’re under renovation.
- ₹74,241 Cr market cap
- P/E: 159 (not a typo)
- Net profit down 66% in FY25
3. Business Model (WTF Do They Even Do?)
Prestige isn’t just a builder—it’s a diversified realty octopus.
- Residential: 150 completed projects, 127 mn sq.ft
- Office: 50 mn sq.ft completed, 23 mn ongoing
- Retail: 10 mn sq.ft completed, mall game strong
- Hospitality: 10 hotels, 1,439 keys operating
- Warehousing + Property Mgmt: Over 120 mn sq.ft maintained
Money comes from sales, leases, rentals, and “your dream home” advertisements.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 8,315 | 7,877 | 7,349 |
| Net Profit (₹ Cr) | 1,067 | 1,629 | 617 |
| EPS (₹) | 23.49 | 34.28 | 10.85 |
| OPM (%) | 25% | 32% | 34% |
| Dividend Payout % | 6% | 5% | 17% |
📉 Sales shrinking, but margins expanded (yay!)
📉 Profits fell 66% in FY25 (nay.)
5. Valuation
- P/E = 159 = Higher than startup SaaS companies
- Price/Book = 4.82
- Fair Value Range = ₹1,250 – ₹1,450 based on normalized EPS of ₹11–₹13 and sustainable P/E of 100 (still generous)
You’re buying brand, not bargain.
6. What’s Cooking – News, Triggers, Drama
🔥 Latest headlines:
- Q1 FY26: ₹12,126 Cr record sales (Pallavaram, Mumbai, NCR—expansion alert!)
- Filed DRHP for Prestige Hotels
- ₹450 Cr corporate guarantee to JV (Jul 2025)
🍿 Risks & Triggers:
- High debt = high drama if sales dry up
- Hospitality segment spinoff can unlock value (or more confusion)
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹401 Cr | ₹401 Cr | ₹431 Cr |
| Reserves | ₹9,574 Cr | ₹10,888 Cr | ₹14,992 Cr |
| Borrowings | ₹9,420 Cr | ₹13,458 Cr | ₹13,180 Cr |
| Total Assets | ₹36,271 Cr | ₹47,974 Cr | ₹58,795 Cr |
💣 Debt doubled in 2 years. Leverage = structurally loaded.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY23 | 1,540 | -2,697 | 546 | -612 |
| FY24 | 1,297 | -2,455 | 1,969 | 812 |
| FY25 | 131 | -1,348 | 959 | -258 |
🪙 FY25 operating cash collapsed. Not ideal.
🧨 Financing needed to patch holes.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 10% | 15% | 8% |
| ROE (%) | 4.2% | 6.3% | 3.5% |
| Working Cap Days | 252 | 436 | 644 |
| Cash Cycle | 58 | 57 | 9,171 |
🛑 ROE tanked.
📦 Working capital cycle = sloth-level slow
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM (%) |
|---|---|---|---|
| FY23 | 8,315 | 1,067 | 25% |
| FY24 | 7,877 | 1,629 | 32% |
| FY25 | 7,349 | 617 | 34% |
Sales peaked in FY23. Profits did a reverse somersault in FY25.
11. Peer Comparison
| Company | P/E | ROE (%) | Net Profit (₹ Cr) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| DLF | 45.1 | 11.2 | 4,579 | 2,06,442 |
| Macrotech (Lodha) | 51.8 | 14.7 | 2,764 | 1,43,099 |
| Prestige Estates | 158.8 | 3.5 | 617 | 74,241 |
| Godrej Properties | 56.2 | 8.9 | 1,216 | 68,337 |
🏷️ Prestige = lowest ROE, highest P/E. A real estate paradox.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Mar 2025 |
|---|---|
| Promoters | 60.95% |
| FIIs | 17.08% |
| DIIs | 19.23% |
| Public | 2.74% |
📉 FIIs exiting (was 23.7% in mid-2022)
🏗️ Promoter stake remains stable post dilution
13. EduInvesting Verdict™
Prestige is a real estate behemoth with pan-India presence and iconic projects. But financial performance is like a pre-launch brochure—full of promises, light on delivery.
- High valuations
- Slowing growth
- ROE + ROCE = meh
- Debt = tall, just like its towers
If India’s real estate boom continues, Prestige might… well, regain its prestige. But till then, this stock’s upside might be limited to the brochure gloss.
Metadata
– Written by EduInvesting Research | July 15, 2025
– Tags: Prestige Estates, Residential Projects, Hospitality, Malls, REITs, Bengaluru Builders, Real Estate Debt
