Despite an encouraging quarter on collections, PEPL has seen further debt built up (due to asset portfolio stake consolidation), posing a challenge for the management in achieving optimal leverage. Further pending capex includes Rs 13bn/4-5bn for Office and Retail/ Hospitality respectively. One of the few positives is that ~60% of debt is backed either by annuity or by rental securitization/ bill discounting. Launches were largely tilted towards commercial projects. Asset stake sale is key for further re-rating. Retain NEU with Rs 286/sh TP. We maintain NEU on Prestige Estate (PEPL) owing to muted presales, increasing debt and limited visibility on asset monetization. Our SOTP based TP is Rs 286/sh. We remain constructive on leasing business and cap rate compression in declining interest rate scenario will cap valuation downside.