Buy Brigade Enterprises; target of Rs 700: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Brigade Enterprises has a strong H2 launch pipeline of ~7msf worth INR 76bn, which is expected to drive pre-sales growth.
  • The company is expanding its presence in new markets, including Chennai and Hyderabad, which is expected to contribute to pre-sales growth.
  • Brigade Enterprises has a healthy balance sheet position, with a debt-to-equity ratio of 0.31x, and is expected to generate strong operating cash flows.
  • The company's office portfolio is expected to expand from 9.5msf to ~12.5msf by FY29, generating ~INR 17bn in rental income.

Thesis Validation Checklist

  • Investors should watch for the company's ability to execute its launch pipeline and achieve its pre-sales guidance of INR 90bn for FY27.
  • The company's ability to maintain its margin guidance of 22-24% for FY27 will be crucial.
  • The growth of the company's office portfolio and rental income will be an important indicator of its success.
  • The company's balance sheet health and ability to manage its debt will be closely monitored.