Check Before You Invest : Prestige Estates Projects Ltd

Snapshot

Q.1 Which industry/sub-sector does Prestige Estates Projects Ltd belong to?

Prestige Estates Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.

Q.2 Is Prestige Estates Projects Ltd a good quality company?

Prestige Estates Projects Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Prestige Estates Projects Ltd undervalued or overvalued?

Prestige Estates Projects Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Prestige Estates Projects Ltd a good buy now?

Prestige Estates Projects Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd revenue growth is 8.4% for FY-2025, which is above its 5-year CAGR of -3.06%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Return on capital employed is 5.81% for FY-2025, which is below its 5-year historical median of 7.88%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Return on Asset is 0.82%, which is below its 5-year historical median of 1.32%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Return on equity is 2% for FY-2025, which is below its 5-year historical median of 3.96%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Cash conversion cycle is 786 days, above its 5-year historical median of 660 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.13	0.22
ROE	2	3.96
ROCE	5.81	7.88
Cash Conversion Cycle	786 days	660 days

Q.6 Gross Profit margin of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.4% for FY-2025, which is in line with its 5-year median of 17.4%, indicating stable margins.

Q.7 Operating Profit Margin of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.7% for FY-2025, which is in line with its 5-year median of 22.7% indicating stable margins.

Q.8 Net Profit Margin of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Net Profit Margin is 6.49% for FY-2025, is below with its 5-year median of 7.87%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	17.4	17.4
Operating Profit Margin	22.7	22.7
Net Profit Margin	6.49	7.87

Q.9 Debt to Equity ratio of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Debt-to-Equity ratio is 0.29, which is lower with the industry average of 0.51, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Prestige Estates Projects Ltd?

Prestige Estates Projects Ltd Debt to cash flow from operations is 44.17, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prestige Estates Projects Ltd?

Promoters hold 60.94% of the Prestige Estates Projects Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Prestige Estates Projects Ltd vs industry peers?

Prestige Estates Projects Ltd revenue CAGR is -3.06%, compared to the industry median CAGR of 9.33%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	8.4	9.3
Gross Profit Growth	-19.4	17
Operating Profit Growth	-20.5	13.3
Net Profit Growth	-24	29.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.13	0.19
ROE	2	8.18
ROCE	5.81	8.96
Cash Conversion Cycle (days)	785.59	664

Valuation & price assessment

Q.1 Stock return of Prestige Estates Projects Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	23.7%	39.6%	43.4%	8.5%

Q.3 Valuation ratios of Prestige Estates Projects Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	641.3	100.43	34.05
Price to Book	5.2	4.08	1.53
Price to Sales	20.76	7.44	5.34
EV to EBITDA	59.27	31.35	14.40

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