Stock To Buy: Motilal Oswal Bets On This Midcap Real Estate Stock, Claims Robust 63% Return

Motilal Oswal maintains its bullish outlook on Prestige Estates Projects Ltd (PEPL), a midcap Real Estate sector stock. The brokerage has assigned a "Buy" on the stock of PEPL with an estimated target price of Rs 675 apiece. It sees a potential upside of up to 63% from the stock's current market price. Check below to know more:

PEPL's Stock Outlook & Returns

The last traded share price of PEPL is Rs 414.55 apiece. It gained 2.16% in the past 1 week. However, it has fallen 6.36% in the past 1 month and 3.46% in the past 1 year, respectively. It gained 13.5% in the past 3 years and 30.42% in the past 5 years, respectively.

The stock recorded its 52 week low on 20 June 2022 at Rs 379 apiece and 52 week high on 1 April 2022 at Rs 526.45 apiece, respectively. The market value of the stock is Rs 16,617.72 crore.

 

Buy Stock For A Target Price Of Rs 675 apiece

Motilal Oswal said, "While PEPL has given strong growth guidance for its residential business, we maintain our estimates and remain watchful on its progress on the BD front. As PEPL's residential segment further scales up, the cash flow generation will be sufficient to take care of business development spending and commercial capex requirements without straining the balance sheet, which is a key investor concern."

It added, "Once the commercial portfolio fully stabilizes over the next five to six years, it will generate rental income of INR32b, which is right now not fully implied into the current valuation. We reiterate BUY with an unchanged SOTP-based TP of INR675, implying 63% upside potential."

 

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.