Mehabe score: 3 G Factor: 0 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 0 and Piotski score of 6.
Description
Prestige Estates Projects is engaged in the business of real estate development.Site:PRESTIGE
Market Cap:
Rs 11,687 cr
Price:
292.0
Trading pe:
86.4x
Book-value:
135/share
Div yield:
0.51 %
Earning yield:
7.21%
Face-value:
10.0/share
52week high:
325.00
52week low:
167.00
Technical Analysis
Stock trades at 292.0, above its 50dma 279.43. It also trades above its 200dma 272.42. The stock remains bullish on techicals
The 52 week high is at 325.00 and the 52week low is at 167.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– ‘s median sales growth is 30.89% of last 10 years
Weakness
– has low interest coverage ratio.
– has a low return on equity of 7.91% for last 3 years.
-Dividend payout has been low at 13.52% of profits over last 3 years
-Promoter holding has decreased over last 3 years: -4.52%
Competition
– The industry trades at a mean P/E of 43.5x. DLF trades at the industry’s max P/E of 283.6x. PRESTIGE trades at a P/E of 86.4x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 6.0. PRESTIGE has a G-Factor of 0 and Piotski scoreof 6.
– Average 1 month return for industry is 13.2%. The max 1- month return was given by Oberoi Realty: a return of 19.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2268.0 cr compared to Rs 1982.0 cr for period ended Mar 2020, a rise of 14.4%
Operating Profits reported at Rs 550.0 cr for period ended Mar 2021 vis-vis 491.0 for period ended Mar 2020 .
Operating Margins contracted -52.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 33.34 compared to Rs 1.46 for previous quarter ended Dec 2020 and Rs 0.38 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 7264.0 cr for period ended Mar 2021 vis-vis sales of Rs 8125.0 cr for the period ended Mar 2020, a fall of 11.9%. The 3 year sales cagr stood at 9.7%.
Operating margins shrank to 27.0% for period ended Mar 2021 vis-vis 29.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 1456.0 cr for period ended Mar 2021 vis-vis sales of Rs 403.0 cr for the period ended Mar 2020, rising 72.3%.
Company recorded a healthy Net Profit CAGR of 57.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 63% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -14% vis-vis a compounded sales growth of 19% over the last 3 Years. – The compounded profit growth on a TTM basis is -73% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 28.9% vis-vis 29.45% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 2.01% vis-vis 2.13% for Dec 2020
Conclusion
– ‘s median sales growth is 30.89% of last 10 years – has low interest coverage ratio.
– has a low return on equity of 7.91% for last 3 years.
-Dividend payout has been low at 13.52% of profits over last 3 years
-Promoter holding has decreased over last 3 years: -4.52%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 279.43 and is trading at 292.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
