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    Buy Brigade Enterprises, target price Rs 573: ICICI Securities

    Synopsis

    Brigade Enterprises Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 11744.71 Crore) operating in Real Estate sector.

    buy, sellGetty Images
    Promoters held 43.85 per cent stake in the company as of 30-Jun-2022, while FIIs owned 13.31 per cent, DIIs 24.7 per cent.
    ICICI Securities has buy call on Brigade Enterprises with a target price of Rs 573. The current market price of Brigade Enterprises is Rs 504.4. Time period given by analyst is one year when Brigade Enterprises Ltd. price can reach defined target.

    Brigade Enterprises Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 11744.71 Crore) operating in Real Estate sector.

    Brigade Enterprises Ltd. 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 30-06-2022, the company reported a Consolidated Total Income of Rs 920.28 Crore, down -4.61 % from last quarter Total Income of Rs 964.72 Crore and up 135.05 % from last year same quarter Total Income of Rs 391.52 Crore. Company reported net profit after tax of Rs 60.55 Crore in latest quarter.

    Investment Rationale
    Brigade Enterprises’ (BRGD) clocked Q1FY23 residential sales bookings worth Rs8.1bn (I-sec estimate of Rs7.8bn) in spite of muted launches of 0.5msf. With another 9.5msf of residential launches lined up mainly in Bengaluru over remainder of FY23 and H1FY24, the brokerage models for sales bookings of Rs36.5bn in FY23E. The company also achieved incremental leasing of 0.4msf (mainly in Tech Gardens of 0.27msf) and with continued momentum in leasing, it expects BRGD’s share of rental NOI to grow at 25% CAGR over FY21-24E to Rs5.7bn driven by Tech Gardens, Bengaluru and WTC, Chennai. Further, it expects the company’s hotel business to clock an EBITDA of Rs1.0bn in FY23E and Rs1.2bn in FY24E vs. FY20 EBITDA of Rs0.9bn. It retains BUY rating with an unchanged target price of Rs573/share based on 1x FY23E NAV.

    Promoter/FII Holdings
    Promoters held 43.85 per cent stake in the company as of 30-Jun-2022, while FIIs owned 13.31 per cent, DIIs 24.7 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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