Brigade Enterprises Ltd. is a mid-cap real estate stock with a market capitalization of ₹10,206.6 crore. The company is primarily engaged in the business of real estate development, leasing and hospitality and related services in south India. Since its inception, Brigade has completed 250+ buildings, amounting to over 70 million sq. ft of developed space across a diverse real estate portfolio, its website shows.
Shares of Brigade Enterprises have increased 58.57 per cent in the last one year. Further, the Stock gave a 3-year return of 156.52% as compared to the Nifty Midcap 100 which gave a return of 51.31%. (as of 28 June closing price).
The stock's 52-week high and low levels were Rs. 268.70 apiece and Rs. 554.70 apiece, respectively. Taking Tuesday's closing price of ₹446.85 into account, it has risen 66.30 per cent from its 52-week low.
The stock traded at a price-to-earnings (P/E) multiple of 122.84, and it had an EPS of ₹3.59. while the price-to-book value ratio stood at 3.58. The return on equity (ROE) was at 8.66 per cent.
Recently, the company signed a Joint Development Agreement to develop around 2.1 million square feet in Chennai. Brigade Group expects its Chennai residential business to generate approximately ₹6,000 crore in revenue over the next five years.
Brigade Group registered its best-ever residential performance in FY22, growing 9% in sales value over FY21. The company recorded 4.72 mn sqft of net new bookings having a sales value of Rs. 3,023 cr compared to an area of 4.60 mn sqft and sales value of 2,767 cr in FY21.
Brigade’s operating cash flow improved to ₹415cr (+4% YoY and +22% QoQ), led by a strong collection of ₹1,334cr (+96% YoY and 22% QoQ). Consequently, Brigade’s net debt was reduced by ₹237cr QoQ to ₹1,619cr. Net debt to equity stood at 0.71 as of March 2022, according to Edelweiss report.
The promoters hold 43.38 per cent of the shares in the company, while foreign institutions raised their stake to 13.6 per cent in the March quarter from 12.9% in June 2021. Mutual funds hold 22.12 per cent of the shares, and regular shareholders own 18.62 per cent.
Meanwhile, the government's decision to lower duties on some steel raw materials, levy charges on steel product exports, and measures to improve cement availability is expected to help real estate developers reduce construction costs.
An average of 13 analysts polled by MintGenie have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
