Shares of Prestige Estates rose in early trade today after the property company announced its second quarter results. The company reported a 77.4% year-on-year (YoY) decline in September quarter net profit at Rs 192.2 crore. Profit slipped due to a deferred tax impact of Rs 106 crore linked to recent changes in the tax code, including removal of capital gains indexation benefits.

Shares of Prestige Estates rose 2.58 per cent to Rs 1648.10 on Wednesday against the previous close of Rs 1606.50 on the BSE. A total of 0.16 lakh shares of the company changed hands, representing a turnover of Rs 2.51 crore. The market capitalization of Prestige Estates rose to Rs 71,352 crore on the BSE.

Revenue climbed 3 per cent to Rs 2,304.4 crore in the second quarter from Rs 2,236.4 crore in the corresponding quarter last year, highlighting consistent top-line growth despite wider headwinds.

Operating profit rose 6.5 per cent to Rs 631.3 crore in the second quarter from Rs 592.5 crore a year ago. The EBITDA margin increased slightly to 27.4% from 26.5% last year.

Nuvama has a price target of Rs 2,175 for the real estate sector stock. He maintained a buy position.

“Strong housing demand and a robust pipeline of launches across geographies during H2FY25 are likely to drive PEPL’s sales trajectory going forward. Improving office demand and strengthening Prestige Estates’ balance sheet post-QIP support our bullish stance on the company. Retain ‘BUY’ with revised price target of Rs 2,175 (Rs 2,136 earlier) at 40% premium to NAV amid valuation deferral to Q2FY27E,” Nuvama said

Prestige Estates stock has a one-year beta of 0.9, indicating low volatility over the period. In technical terms, Prestige Estates’ Relative Strength Index (RSI) stands at 44.5, indicating that it is neither trading in the overbought nor overbought zone.

Prestige Estates is one of the country’s leading property developers.