Global brokerage Nomura has initiated coverage on Prestige Estate Projects with a ‘Buy’ rating and a target price of ₹1,900, implying a nearly 17% upside from Tuesday’s close. The brokerage sees Prestige on track to become a pan-India powerhouse, with scale-up in Mumbai and NCR, aggressive pre-sales momentum, and a strong annuity-plus-hotel portfolio that could drive earnings growth multifold over the next 4–5 years.

Year-to-date (Y-T-D), Prestige Estate shares have slipped 3.5 per cent, as compared to Sensex’s rise of 4 per cent.

Why is Nomura bullish on Prestige Estate Projects?

Pan-India strategy, stronger scale in Mumbai & NCR

Nomura’s analysis shows that Prestige Estates’ pan-India growth strategy is superior to peers, and a strong scale-up is likely, particularly in Mumbai and the Delhi National Capital Region (NCR), driven by both mid-income township and luxury projects. The company has also guided for FY26E pre-sales of ₹25,000–27,000 crore, but brokerages expect the developer to surpass estimates with pre-sales of about ₹29,000 crore (70 per cent year-on-year (Y-o-Y)), 10 per cent higher than guidance.

The company delivered ₹12,100 crore of pre-sales in Q1FY26 alone, and has a launch pipeline of 29 million sq. ft. (msf) with a Gross Development Value (GDV) of ₹29,900 crore in the remaining nine months. Even if only 70–80 per cent of the launch target is achieved, pre-sales from launches could generate ₹9,000–11,000 crore, on top of ₹20,000 crore of available inventory.

Execution to drive annuity and hotels Ebitda 4–5x

Superior execution will help scale Prestige Estate’s annuity and hotel Earnings before interest, tax, depreciation and amortisation (Ebitda) 4-5x over the next 4-5 years, according to Nomura. In the commercial segment, the company expects exit rentals to grow from ₹820 crore in FY26 to ₹385 crore by FY30E. Of this, the brokerage estimates ₹2,200 crore will come from assets in BKC and Mahalaxmi, where the company had a strong start to preleasing.

In the hotel segment, the management expects scope to expand from 1,200 rooms in FY25 to 2,400 in FY27E as high-profile assets in Delhi Aerocity go on stream. Separately, Prestige Estate has the strongest project lineup in the commercial and retail segments as compared to its peers.