Brigade Enterprises fully priced at current levels: Tulsian

SP Tulsian, sptulsian.com feels that there are better stocks available than Brigade Enterprises with huge land banks. This stock seems to be fully priced at current levels.

Tulsian told CNBC-TV18, “When the company went public, it was an over priced issue at the upper band. If one sees the business model they have been more on the lease basis. The commercial portion of their total development has been leased out and since the entire lease agreement has been entered by the company right now, obviously they have been fetching a very low rental either because of the anchor tenant concept or because of the project having not developed since they all come at the development stage. So because of that their earning model also will be very low.

He further added, “No new addition of the land bank, which could be available to the company for the development in the next 6 to 12 months. Probably these are the two reasons, which have kept the valuations quite low. Since one has so many choices with the listing peers available with huge land banks and this company is only concentrated in Bangalore where the real estate prices have started softening. So all these things will lead to soft listing and the present levels seems to be fully priced for the stock.”