Buy Brigade Enterprises; target of Rs 225: HDFC Securities
HDFC Securities is bullish on Brigade Enterprises has recommended buy rating on the stock with a target price of Rs 225 in its research report dated November 13, 2020.
November 19, 2020 / 12:53 PM IST
HDFC Securities' research report on Brigade Enterprises
BRGD reported operationally strong quarter as pre-sales volume (0.99msf, -1% YoY) recovered to pre-COVID level. Sales value grew to Rs 5.8bn (+9% YoY), as realization grew by 10%. While leasing activity remained tepid, rental collection from existing portfolio continued to be healthy at 99% in 2QFY21. Footfalls at retail malls have improved to 30-35%. Four of the eight hospitality assets achieved gross operating breakeven at the end of October. Collections came in at Rs 5.4bn (vs 3.8bn in 1QFY21). Consolidated net debt increased to Rs 29.9bn (BRGD’s share) from Rs 28.7bn at Jun 20-end.
Despite mid-term challenges in hospitality and retail business, we roll forward our NAV to Dec- 21, maintain BUY with an increased target price of Rs 225/sh (vs Rs 213/sh earlier). Lease tie-ups in BTG Bengaluru will lead to further rerating.
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