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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.

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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.


Outlook


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


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First Published on May 10, 2019 01:13 pm
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