Prestige Estate, ITC among top analyst bets; check target, stop-loss

According to Shrikant Chouhan of Kotak Securities, Prestige remains well placed to benefit from sectoral tailwinds, and ITC continues to position itself as a future-ready Indian conglomerate

Stocks to Buy, Recommended by Shrikant Chouhan of Kotak Securities 

Prestige Estate Projects – Add

CMP - ₹1,609

FV - ₹1,900

Resistance – 1640/1690  

Support – 1585/1560

 

Prestige Estates Projects, with a legacy of nearly four decades in Indian real estate, has built a formidable national presence across 13 cities and operates seamlessly across residential, office, retail, hospitality, and property management services. By the end of Q2FY26, the company had successfully delivered 310 projects covering approximately 20.2 crore sq ft, while its growth visibility remains strong with 65 ongoing projects totalling 12.6 crore sq ft and an additional 65 upcoming developments spanning 7.3 crore sq ft. Prestige continues to scale its footprint across India with a renewed thrust on high-velocity launches, reinforcing its dominant position in Bengaluru, Hyderabad, and Chennai, building on growing traction in Mumbai, and now marking its presence in the NCR market as well.

 

 

Backed by a healthy launch pipeline of ₹44,800 crore and unsold inventory of ₹19,900 crore, the company is targeting robust FY26 pre-sales of ₹27,000 crore. After a softer FY25 caused largely by launch delays, Prestige has bounced back strongly in H1FY26, supported by a series of large-scale launches and steady sustenance sales across projects. Pre-sales in Q2FY26 stood at ₹6,020 crore, marking an impressive 50 per cent Y-o-Y increase, while the first half delivered ₹18,100 crore in pre-sales—up 157 per cent Y-o-Y and already achieving 67 per cent of the company’s FY26 guidance. The strong momentum was further supported by strong launches during the half-year. With a launch pipeline of ₹27,200 crore still to be activated in the remaining part of the year, Prestige is well-positioned to sustain its growth trajectory, and we expect full-year pre-sales to surpass guidance and reach approximately ₹28,760 crore.

 

Alongside the robust residential business, the annuity portfolio continues to perform steadily, with office occupancy at 93.4 per cent and 23 lakh sq ft of leases concluded in Q2FY26. The company plans to scale its annuity (office + retail) income meaningfully, targeting ₹5,000 crore in exit rentals by FY30, compared to ₹593 crore in FY25 and an estimated ₹949 crore in FY26. With the residential sector showing value-driven growth and consolidation favouring branded developers, Prestige remains well placed to benefit from sectoral tailwinds, and we maintain a constructive view with an ADD rating and a fair value of ₹1,900.  ALSO READ | Motilal Oswal sector of the week: Defence; check top bets, target here

ITC – Add

CMP - ₹402

FV - ₹480

Resistance –  408/412

Support –  398/395

 

ITC Limited is one of India’s most diversified conglomerates, with a legacy that spans over a century. Founded in 1910 as the Imperial Tobacco Company of India, ITC has evolved far beyond its origins and today operates across multiple high-impact sectors, including fast-moving consumer goods (FMCG), hotels, agri-business, information technology, packaging, and paperboards. Its transformation from a tobacco-centric company to a multi-business enterprise is often cited as one of the most successful diversification stories in India’s corporate landscape.  A key pillar of ITC’s growth has been its expanding FMCG portfolio. Brands such as Aashirvaad, Sunfeast, Bingo!, Yippee!, Classmate, Fiama, Vivel, and Savlon have built a strong national presence. The company’s focus on product innovation, distribution strength, and supply-chain integration has helped it steadily gain market share in competitive categories dominated by global and domestic players. Despite its diversification, ITC’s cigarettes business remains its most profitable segment, generating significant cash flows that help fund investments in other verticals.  The company’s hotel business, ITC Hotels, is one of India’s largest luxury hospitality chains, emphasising sustainability and responsible luxury. Its agri-business division plays a pivotal role in sourcing and exporting agricultural commodities, supported by ITC’s well-known e-Choupal network, which empowers farmers with direct market access and information. ITC’s sustainability initiatives are central to its identity. The company has achieved several environmental milestones, including being water-positive, carbon-positive, and solid-waste-recycling-positive for many years. These achievements reflect a long-term commitment to community development, responsible manufacturing, and environmental stewardship.  With its strong financial base, wide brand portfolio, and deep rural linkages, ITC continues to position itself as a future-ready Indian conglomerate. Its strategic focus on innovation, digital transformation, and consumer-centric growth ensures that it remains a significant force in India’s evolving economic landscape. The outlook is improving across segments. Leaf tobacco price deflation should aid cigarette EBIT growth starting in Q4. GST on MRP versus transaction value earlier should increase tax incidence on Godfrey Phillip’s Marlboro Advance Compact, bringing it on par with ITC. FMCG growth is expected to improve, partly aided by the GST rate cut in about 50 per cent of ITC’s FMCG portfolio. The introduction of minimum import duty and the likely imposition of anti-dumping duty could aid growth and margin recovery in paperboards.  (Disclaimer: This article is by Shrikant Chouhan, head equity research, Kotak Securities. Views expressed are his own.)