Buy Brigade Enterprises, target price Rs 632: HDFC Securities

HDFC Securities has buy call on Brigade Enterprises with a target price of Rs 632. The current market price of Brigade Enterprises is Rs 487.15.

Brigade Enterprises, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 11187.14 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 858.63 Crore, down -5.87 % from last quarter Total Income of Rs 912.19 Crore and down -7.99 % from last year same quarter Total Income of Rs 933.19 Crore. Company has reported net profit after tax of Rs 42.68 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 31-12-2022, the company has a total of 23 Crore shares outstanding.

Investment Rationale
The segment is expected to receive an impetus with the implementation of the DESH bill. At full occupancy, the annual exit rental will be INR 7.5-8bn. Given BEL’s strong cash position of INR 19bn, a robust business development pipeline, and a healthy balance sheet, we remain constructive.

Promoter/FII Holdings
Promoters held 43.81 per cent stake in the company as of 31-Dec-2022, while FIIs owned 14.24 per cent, DIIs 24.55 per cent.