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 August 19, 2019.
ICICI Direct's research report on Brigade Enterprises
Brigade Enterprises (BEL) achieved highest ever quarterly sales volume at 1.13 msf (1.6x YoY growth) in Q1FY20. Pre-sales grew 1.7x YoY to Rs 593.3 crore. On the leasing front, BEL leased 0.77 msf of new office space in Q1FY20, which is estimated to yield rentals worth Rs 66.0 crore. On the financial front, revenues grew 1.4% YoY to Rs 708.7 crore. EBITDA margins were flattish YoY at 25.7%. PAT de-grew 34.7% YoY to Rs 41.2 crore in Q1FY20 on account of higher interest expense and higher tax rate.
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 (1.6x 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.