Prestige Estates (PRESTIGE)

FairStock Score: 32/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable moat, honest management, and a price below intrinsic value. Prestige Estates operates in residential and commercial projects, a cyclical, capital-hungry field. At ₹1,592.50, market cap ₹68,594 Cr, P/E 60.23, and P/B 4.22, Mr. Market is asking a premium. Book value is only ₹377.80, so Graham Number ₹438.07; my margin of safety is -217.99%. That tells me price is far above asset-based value. Returns on capital are modest: ROE 7.75%, ROCE 7.66%. Debt/equity is 1.05, and free cash flow is -₹1,217 Cr. I don't like negative FCF, but real estate can consume cash during project construction. Latest quarter sales ₹3,873 Cr and net profit ₹245 Cr show activity, yet profit growth is -19.30% and five-year revenue CAGR is -1.99%. Sales growth of 15.90% is better, but not enough to offset earnings decline. Promoter holding 60.95% offers alignment. Dividend yield 0.13% gives almost no cash return. Piotroski 7/9 is constructive, but Altman Z-Score 1.23 signals financial distress risk, and EV/EBITDA 280.39 is stratospheric. FairStock 32/100 says risky. The 52-week range ₹1,090-₹1,805.20 shows volatility. I see no durable moat here; real estate is price-competitive and balance-sheet dependent. I would wait for debt reduction, positive FCF, and ROE/ROCE improving toward mid-teens before paying such a multiple. Quality may be improving operationally, but valuation leaves no margin for error.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer