Buy Brigade Enterprises, target price Rs 629: ICICI Securities

ICICI Securities has buy call on Brigade Enterprises with a target price of Rs 629. The current market price of Brigade Enterprises is Rs 458.5.

Brigade Enterprises, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 10532.27 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
The brokerage expects the company to clock 20% rental NOI CAGR over FY22-25E to Rs6.8bn driven by incremental leasing in Tech Gardens, Bengaluru and World Trade Centre, Chennai. With the Indian hotel industry seeing buoyant demand, the brokerage estimates the company to clock hotel EBITDA of Rs 1.2bn in FY23E, Rs1.5bn in FY24E and Rs1.6bn in FY25E with the hotel portfolio capable of clocking Rs1.8bn of stabilised annual EBITDA beyond FY25E.

Promoter/FII Holdings
Promoters held 43.82 per cent as of September ended quarter, while FIIs owned 0 per cent , DIIs 25.28 per cent.