Motilal Oswal's research report on Brigade Enterprise
In 9MFY24, pre-sales jumped 44% YoY to INR37.7b (90% of FY23 presales). This growth was driven by strong sustained sales, with new launches contributing 50% to the overall pre-sales value in 3QFY24 and 44% in 9MFY24. Despite moderation in new launches in 4Q, BRGD is on track to deliver INR53b in pre-sales for FY24, up 28% YoY. This translates into a CAGR of 24% in bookings over FY21-24. While Bengaluru has been the focal point of the strong performance, BRGD has significantly expanded its footprint in Chennai and Hyderabad. Of the 16 msf acquired since FY23, 13 msf were into these two markets. Overall, the company has INR190b worth of project pipeline in Chennai and Hyderabad and is planning to launch INR60b (5msf) worth of projects in these markets over the next 12 months (including the Kokapet and Mount road projects).
Outlook
Additionally, the proposed development of 5msf office/retail along with 1,000 keys can be valued at INR30-35b; however, this is not currently reflected in the company’s valuation. Hence, we maintain our Buy rating with an unchanged TP of INR1,250, implying an upside of 31%.
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