Prestige Estate Projects has zoomed 15% to Rs 98.75, extending its Thursday’s 11% rally after the company delivered strong operating performance during the quarter ended December 2011.
The operating profit margins (OPM) of the Bangalore-based real estate company have improved by 600 basis points to 35% in Q3FY12 from 29% in the corresponding quarter of previous fiscal. Management expects EBITDA margins to stabilize between 30-35% going forward.
However, sales were down 53% at Rs 180 crore year-on-year due to higher base of Q3FY11, where sales were boosted by good response to pre-launch of Prestige Tranquility.
HDFC Securities expect substantial jump in project revenue recognition in 4QFY12 on the back of expected revenue from Prestige White Meadows, Prestige Polygon and Prestige Tech Park III which are expected to cross revenue recognition threshold in Q4FY12.
The trading volumes on the counter more than doubled with a combined 1.09 million shares have already changed hands so far, against an average 200,000 shares that were traded daily in past two weeks on the NSE and BSE.
