Motilal Oswal's research report on Brigade Enterprises
Brigade Enterprise (BEL)’s 3QFY23 pre-sales grew 48% YoY/27% QoQ to over INR10b (12% above our estimate) driven largely by sustenance sales as launches were muted for the quarter. For 9MFY23, bookings came in at INR26b (up 31% YoY) and BEL is on track to meet its 20-25% YoY growth guidance. Sales volume rose 39% YoY/29% QoQ to 1.53msf. Blended realization improved 6% YoY but remained flat QoQ at ~INR6,600/sqft due to contribution from the low-realization plotted development project. BEL launched a plotted project with saleable area of 0.4msf, which was fully sold out. Currently, it has a 12M rolling forward launch pipeline of 9msf (down from 13msf in 2QFY23), due to launch of the plotted project (1.9msf), push out in launch of Chennai project and adjustment for actual phase launch.
We reiterate our BUY rating on the stock with an unchanged TP of INR720, implying an upside potential of 45%.
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