Buy Brigade Enterprises, target price Rs 695: ICICI Securities

ICICI Securities has buy call on Brigade Enterprises with a target price of Rs 695. The current market price of Brigade Enterprises Ltd. is Rs 591.75.

Brigade Enterprises Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 13680.23 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 30-06-2023, the company reported a Consolidated Total Income of Rs 685.43 Crore, down -21.41 % from last quarter Total Income of Rs 872.11 Crore and down -25.52 % from last year same quarter Total Income of Rs 920.28 Crore. Company reported net profit after tax of Rs 21.89 Crore in latest quarter.

Investment Rationale
While the company now has 100% occupancy in non-SEZ space, the Tech Gardens and World Trade Centre, Chennai projects continue to see higher vacancies owing to delay in SEZ de-notification policy. The company continuesto target 100% occupancy at a portfolio level by Mar’24 (84% currently). We expect the company to clock rental NOI CAGR of 16% over FY22-25E to INR6.2bn led by up lease-up of vacant space in Tech Gardens, Bengaluru andBrigade Twin Towers office project becoming fully operational in FY25E.

Promoter/FII Holdings
Promoters held 43.78 per cent stake in the company as of 30-Jun-2023, while FIIs owned 13.67 per cent, DIIs 25.45 per cent.