Buy Brigade Enterprises; target of Rs 1525: Motilal Oswal

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26 Aug, 2025 12:21

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Brigade Enterprise (BEL) reported bookings of INR10.9b in 1QFY25, up 9% YoY (16% below estimate). Sales volume stood at 2.7msf, down 21% YoY. Aided by the launch of a premium project in Bengaluru, BEL recorded the highest ever quarterly realization of INR9,440 psf, up 38% YoY. Towards the end of 1Q, the company also launched its much awaited luxury project ‘Brigade Icon’ in Chennai. The project’s contribution to total bookings has spilled over to 2QFY25. In FY25, BEL is aiming to launch 12.6msf of projects with a GDV value of ~INR130b across the three markets of Bengaluru, Chennai, and Hyderabad. With scale-up in Chennai and Hyderabad, we expect the company to deliver 32% CAGR in pre-sales over FY24-26E to INR105b. P&L performance: Revenue increased 65% YoY to INR11b (6% below estimate). EBITDA stood at INR2.9b, up 67% YoY with a margin of 27% (up 40bp YoY). Adj. PAT surged 2x YoY to INR837m, clocking a margin of 8%.

This will provide growth visibility in the residential segment and lead to further re-rating. We reiterate our BUY rating with a TP of INR1,525, implying 32% potential upside.

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