Prestige Estates share price falls over 3%, following I-T raid news

Prestige Estates share price fell by more than 3% during Thursday’s trading session following the company’s announcement on Tuesday (February 25) that the Income Tax (I-T) Department has initiated a search operation at both its headquarters and branch offices beginning February 25, 2025. Prestige Estates share price today opened at an intraday high of ₹1,181 apiece on the BSE, and the stock touched an intraday low of ₹1,153.85 per share.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that Prestige Estates share price are under pressure in the opening hour and have broken below its recent support of 1,200. For now the momentum remains with the bears with 950 acting as next support. On the flip side as long the recent hurdle of 1,250 is not broken , any bounce may attract selling pressure.

The firm announced that it is completely cooperating with the authorities by supplying all required information and assistance. Currently, the specifics of the investigation and any possible financial or operational repercussions are still unclear.

In early February, the real estate company reported a 38 percent drop in its sales bookings to ₹10,065.7 crore for the April-December period of the current fiscal year, attributing this decline to a reduction in housing project launches due to delays in obtaining regulatory approvals. Prestige Estates, based in Bengaluru, stands out as one of the top real estate developers in the country.

As per its most recent investor presentation, the firm recorded sales of 8.09 million (80.9 lakh) square feet at an average sales realization of ₹13,128 per square foot during the first nine months of the 2024-25 fiscal year.

Q3 Results

The company announced an 85 percent drop in consolidated profit, reporting ₹17.7 crore for the December quarter due to decreased income. In the same quarter last year, its net profit was ₹116.3 crore.

Total income decreased to ₹1,697.9 crore in the third quarter of this fiscal year, down from ₹1,970.5 crore in the same period last year, as stated in a regulatory filing.

Regarding the company’s performance, Prestige Estates CMD Irfan Razack stated, “The quarter was moderate, with no new launches and constrained handovers caused by local issues related to e-khata. Nevertheless, we recorded ₹3,000 crores in sustenance sales, showcasing the robustness of our brand and product offerings.”

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