Prestige Estates Projects Limited

“Prestige Estates is a real franchise in a genuinely strong Indian real estate upcycle, but a decade of sub-WACC ROCE (~8%), chronically negative free cash flow (10 of 12 years), dangerously thin EBIT interest coverage (1.28x FY25), and a 62x trailing P/E leave no margin of safety and no clear path to above-average long-term compounding; the 10-year bull-case return of 1.5–2x barely covers inflation, while balance sheet stress creates real risk of permanent capital impairment in a downturn — investors should look to better-quality Indian real estate peers with superior returns on capital and cleaner balance sheets.”