Time to reset economy

Get App

Time to reset economy

Last Updated : May 10, 2019 01:13 PM IST | Source: Moneycontrol.com

Buy Brigade Enterprises; target of Rs 330: ICICI Direct

ICICI Direct is bullish on Brigade Enterprises has recommended buy rating on the stock with a target price of Rs 330 in its research report dated May 09, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Brigade Enterprises

Brigade Enterprises’ (BEL) sales volumes grew 2.2x YoY to 0.96 msf in Q4FY19. The company clocked pre-sales worth 2.2x YoY to Rs 519.8 crore (16.6% QoQ growth) achieving collections worth Rs 618.5 crore (31.2% YoY growth) in Q4FY19. On the leasing front, BEL leased 1.2 msf of new office space in FY19, estimated to yield rentals worth Rs 90.0 crore. Of this, it leased ~0.6 msf in Brigade Tech Gardens & WTC Chennai, which are yet to be operational. On the financial front, revenues grew 75.3% YoY to Rs 760.0 crore in Q4FY19 (our estimate: Rs 692.3 crore). EBITDA margins contracted 280 bps YoY to 28.3% in Q4FY19 but were better than our estimate of 26.6%. Overall, PAT grew 3.3x YoY to Rs 59.3 crore in Q4FY19 on account of higher topline growth and better-than-expected EBITDA margins.


Considering a sharp ramp up in its leasing portfolio and in sales momentum in the residential business, we believe BEL’s current valuation is attractive (1.3x FY20E P/BV). Hence, we maintain our BUY recommendation on the stock with an SoTP-based target price of Rs 330/share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on May 10, 2019 01:13 pm
Follow us on