Shares of Prestige Estates Projects Ltd jumped 5.5 percent in trade on Thursday after brokerage firm CLSA issued a bullish stance on the company.

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CLSA gave a ‘buy’ call on Prestige Estates and raised the target price on the stock to Rs 750 apiece. This implies a nearly 20 percent upside from the stock’s previous close of Rs 625.70 on BSE on Wednesday.

Explaining the rationale behind its ‘buy’ call, CLSA said that channel checks suggest a strong response to Prestige’s new launches in Bengaluru in the second quarter of fiscal year 2023-24.

The company’s total presales in Q2FY24 are estimated at Rs 5,500-6,000 crore, significantly higher than its run rate of Rs 4,000 crore in the past few quarters, noted CLSA.

The brokerage firm believes that this may compel the company to raise its guidance of Rs 16,000 crore for full FY24, which is already its highest pre-sales guidance among all Indian real estate developers.

CLSA also raised Prestige Estates’ FY24-26 estimated pre-sales by 7-9 percent. It added that the current significant discount at which the stock is trading compared to its peers was ‘unwarranted’.

Reacting to CLSA’s statement, Prestige Estates shares jumped as much as 5.5 percent to hit an intra-day high of Rs 660 apiece on BSE on Thursday amid heavy trading volumes. Notably, the stock has rallied by over 58 percent in the last six months.

To recall, for the full fiscal year 2022-23, Prestige Estates’ total sales jumped 25 percent to Rs 12,931 crore, while sales volumes were nearly flat at 15.09 million sqft. The company launched 57 percent higher projects of 26.38 million sqft and the total units sold stood at 9,644.

For FY23, Bengaluru continued to be the largest market for the company with a 59 percent share in sales, though Mumbai proved to be a growing market, with a 21 percent contribution in overall sales at Rs 1,000 crore.

Shares of Prestige Estates were trading 4.55 percent up at Rs 654.2 apiece on BSE at 12:56 PM.