Brigade Enterprises have doubled money for its investors in the last 1 year. It has surged 102 percent from ₹252 last year to ₹511 currently. In comparison, the Nifty rose 16 percent while Nifty Realty rallied 29 percent in the last 1 year.
Among peers as well, the stock has been the best performer in the last 1 year. Oberoi Realty, Sobha, Prestige Estates have risen between 50-70 percent in the last 1 year while Sunteck Realty, Phoenix Mills, Indiabulls Realty and DLF have added 15-45 percent each.
However, going ahead, brokerage house ICICI Securities believes that this multibagger stock has more upside potential. It upgraded the stock to 'Buy' from 'Add' and revised its target price to ₹598 per share from ₹555 earlier. From its current market price, the target price indicates an upside of around 20 percent.
The stock has also given pleasant returns to its long-term investors, rising over 1,100 percent in the last ten years.
"With the waning of Covid cases leading to reopening of offices/malls and resumption in international travel, we expect the company’s annuity and hotel business to see a significant leg up from Q1FY23," ICICI Securities said.
It forecasts the company’s hotel business to clock a marginal EBITDA of ₹3 crore in FY22E, and ₹110 crore in FY24E versus FY20 EBITDA of ₹9 crore.
For the residential business, it sees flattish sales value of ₹280 crore in FY22E but estimates sales bookings of ₹365 crore in FY23E and ₹434 crore in FY24E driven by new launches.
Key risks are prolonged weakness in office leasing and slowdown in residential demand, it added.
Brigade Enterprises, incorporated in the year 1995, is a Mid Cap company operating in the Real Estate sector. Its key Products/Revenue Segments include Income From Real Estate Development, Lease Rentals, etc.
The firm also announced that it has entered into the plotted development space with a 66-acre residential project in Devanahalli, Bengaluru. The project is a strategic joint development that will offer plot sizes ranging from 1,200 square feet to 2,400 square feet.
The real estate company's sales bookings increased by 14 percent to ₹1,994.8 crore in the first nine months of this fiscal, mainly on the back of revival in housing demand.
According to an investor's presentation, the company sold properties worth ₹1,994.8 crore during the April-December period of 2021-22, as against ₹1,749.1 crore in the year-ago period.
Brigade Enterprises Ltd reported a consolidated net profit of ₹78.36 crore for the quarter ended December. The company had posted a net loss of ₹16.12 crore in the year-ago period.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.