Despite an encouraging quarter on collections and pre-sales, PEPL has seen further debt built up, posing a challenge for the management in achieving optimal leverage (target D/E of 1.4 by FY20E). One of the few positives is that ~64% of debt is backed either by annuity or by rental securitization/ bill discounting. Launches during 1HFY20 were largely tilted towards commercial projects (6.2mn sqft out of 7.9mn sqft). The company continues to look at opportunities for monetization of its retail/hospitality assets and update on the same (expected in 3QFY20) would provide a re-rating trigger. Retain NEU with Rs 297/sh TP. We maintain NEU on Prestige Estate (PEPL) despite pre-sales and collections holding steady, owing to increasing debt and limited visibility on asset monetization. Our SOTP based TP is Rs 297/sh. We have increased our FY20/21E EPS estimates by 16%/20% respectively.