Edelweiss recommended buy rating on Brigade Enterprises with a target price of Rs 340 in its research report dated August 09, 2017.
Edelweiss' research report on Brigade Enterprises
Brigade Enterprises’ (BEL) Q1FY18 net profit missed our estimate; new sales were slow due to RERA and GST uncertainty while balance sheet strengthened post QIP monies. We expect BEL’s operations to improve driven by planned new launches and strong office space absorption in Bangalore, translating into enhanced residential demand. The company’s rental asset portfolio is expected to expand and provide steady annuity income with periodic upticks. Affordable housing incentives and preference for organised players post RERA are potential tailwinds. Maintain ‘BUY’.Outlook
BEL’s well-balanced portfolio should benefit from strong Bangalore market fundamentals. Launch of planned projects, completion of annuity assets and demand improvement in Bangalore are key stock catalysts, in our view. Stock valuation appears reasonable—38% discount to our FY18E NAV of INR 425. We maintain ‘BUY’.
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