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The market expects Prestige Estates to do better than it ever has.
At today’s share price, buyers are assuming Prestige Estates grows about 27% a year, forever. Over the last ten years it actually grew about 13% a year. So the share price only makes sense if the business improves on its own track record. If it simply carries on as before, buyers today have paid for something they will not get.
- How it is valued: Discounted cash flow.
- What the price assumes: 27% growth, against 13% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Prestige Estates' revenue went from ₹5,499 crore to ₹12,685 crore — it compounded at about 11% a year over 8 years.
- Biggest swing factor: Sales bookings. Main risk: Property cycle.
01Homes, offices, malls and hotels
Prestige Estates Projects, founded in Bengaluru by the Razack family, is one of India's largest developers. It sells apartments and villas and owns offices, malls and hotels that earn rent.
In 2020–21 it sold a large part of its office and mall portfolio to Blackstone, then began building a new rental portfolio. It has expanded from Bengaluru into Mumbai, Pune, Hyderabad and the Delhi region.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Prestige Estates, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Prestige Estates' record, in plain numbers
Between FY2018 and FY2026, Prestige Estates' revenue went from ₹5,499 crore to ₹12,685 crore — it compounded at about 11% a year over 8 years. Net profit grew from ₹425 crore to ₹1,305 crore, about 15% a year — faster than revenue, so margins widened. In FY2026 it kept 10.3% of revenue as net profit — against a low of 6.8% in FY2020 and a high of 22.1% in FY2021. The latest year added 72.6% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 5,499 | 425 | 7.7% |
| FY2019 | 5,172 | 442 | 8.5% |
| FY2020 | 8,125 | 549 | 6.8% |
| FY2021 | 7,264 | 1,602 | 22.1% |
| FY2022 | 6,390 | 1,215 | 19.0% |
| FY2023 | 8,315 | 1,067 | 12.8% |
| FY2024 | 7,877 | 1,629 | 20.7% |
| FY2025 | 7,349 | 617 | 8.4% |
| FY2026 | 12,685 | 1,305 | 10.3% |
04How Prestige Estates gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Prestige Estates' value
Sales bookings
Pre-sales drive future revenue.
Rental portfolio
Offices and malls add steady income.
Hospitality
Hotels add another earnings stream.
New cities
Expansion beyond Bengaluru adds growth.
06What could go wrong
- Property cycle. Higher rates slow home buying.
- Debt. Building rental assets needs capital.
- Execution. Delays hurt cash flow.
07What the full Prestige valuation shows
Sign in free to see the complete Prestige Estates valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Prestige's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against DLF, Godrej Properties and Oberoi Realty
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Prestige Estates
What does Prestige Estates build?
Homes, offices, malls and hotels.
What did Prestige sell to Blackstone?
A large part of its office and retail portfolio, in 2020–21.
Where is Prestige expanding?
Mumbai, Pune, Hyderabad and the Delhi region.
Is Prestige Estates overvalued?
At ₹1,650 the market is pricing in roughly 27% sustained growth, against the ~13% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Prestige Estates?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
How much debt does Prestige Estates carry?
Debt to equity stands at 0.36, down from 0.42 at the start of the period — the balance sheet is a core input to the cost of capital used here.