Prestige Estates - Balanced portfolio with comfort of South - JM Financial

Prestige Estate is one of the largest developers in Bangalore real estate market with strong cashflow profile (from completed and existing ongoing projects), healthy fresh sales momentum (average Rs.7bn/qtr of fresh sales in last 5 quarters), large outstanding order book pending revenue recognition (Rs.48bn) and growing rental income.

We like Bangalore real estate market from the volume offtake and pricing perspective. The southern market presence and a balanced portfolio of investment and development properties are the key reasons for us to like Prestige Estates.

Initiate with BUY and NAV based target price of Rs.205 (Dec'13).

Source : Equity Bulls

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