Buy Brigade Enterprises, target price Rs 720: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Brigade Enterprises with a target price of Rs 720.The current market price of Brigade Enterprises is Rs 457.65.

Brigade Enterprises, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 10581.84 Crore) operating in Real Estate sector.

Brigade Enterprises key Products/Revenue Segments include Income From Real Estate Development, Lease Rentals, Other Services, Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 912.19 Crore, down -.88 % from last quarter Total Income of Rs 920.28 Crore and up 17.54 % from last year same quarter Total Income of Rs 776.08 Crore. Company has reported net profit after tax of Rs 51.75 Crore in latest quarter.

The company’s top management includes Mr.M R Jaishankar, Mr.Pradeep Kumar Panja, Dr.Venkatesh Panchapagesan, Ms.Lakshmi Venkatachalam, Mr.Bijou Kurien, Mr.Aroon Raman, Mr.Roshin Mathew, Mr.Amar Mysore, Ms.Pavitra Shankar, Ms.Nirupa Shankar, Mr.Velloor Venkatakrishnan Ranganathan. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 23 Crore shares outstanding.

Investment Rationale
On the back of a strong launch pipeline, the brokerage expect the company's pre-sales to record a 17%CAGR to 7msf by FY25. It is believed pick up in business development activity will lead to re-rating in value of its residential segment as the current market price does not reflect the growth potential.

Promoter/FII Holdings
Promoters held 43.82 per cent stake in the company as of 30-Sep-2022, while FIIs owned 13.31 per cent, DIIs 25.28 per cent.