On a healthy launch pipeline, recovery in hospitality assets, and strong operating cashflows. It has assigned a target price of 537, almost 18 percent upside.In its note, Geojit said that Brigade Enterprise has clocked a pre-sale of Rs.2,618.5 cr in 9MFY23, up 31 percent year-on-year.
u201cBrigade clocked a pre-sale of Rs.2,618.5 cr in 9MFY23, up 31% YoY. Area sold increased to 3.96 msf from 3.16msf in 9MFY22, and collection increased to Rs. 2,833 cr. (+34% YoY) during the same period. We expect the momentum to continue, aided by a healthy pipeline. Hospitality revenue increased 61% YoY to Rs. 101 cr for Q3FY23. EBITDA increased to u20b921.1 cr (+17.9% YoY). In Q3 FY23, Average Revenue per Room (ARR) increased by 58% YoY, while occupancy increased by 14%. said the brokerage in its report
Source:- The Economic Timesu201cWe have a positive view on Brigade on the back of a robust residential pipeline (9msf), Healthy cash flows, and the revived hospitality segment. But a rising mortgage rate for a longer period can be a headwind. Hence, we assign Accumulate rating to the stock with a target price of Rs. 537 based on SOTP valuation, it added.
The brokerage said that the lease income is expected to reach Rs.1,100 cr. (Rs.560cr in 9MFY23) by FY25. The lease area under operation will increase from 7.18 to 10 msf over the same period. The major lease assets are located in Bengaluru and Chennai.
Source: CNBC- TV 18u201cGiven a healthy launch pipeline, recovery in hospitality assets, and strong operating cashflows, we have a positive outlook on the stock. But the increased interest rate may tamper with the customeru2019s sentiment. Hence, we assign Accumulate rating to the stock with a target price of Rs. 537 based on SOTP valuation, it added.
On Tuesday, the company stock ended 2.59% down at 453.30 on BSE. The stock has lost 10.38% in a year and fallen 2.25% in 2023.
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