INSUBCONTINENT EXCLUSIVE:
HDFC Securities has a buy call on Brigade Enterprises with a target price of Rs 299.
The current market price of Brigade Enterprises is Rs
195.20.
Time period given by the brokerage is one year when Brigade Enterprises price can reach the defined target.
The view of the
brokerage on the company:Adoption of Ind AS 115 had a negative impact on reserves of Rs 4.1bn
Revenue for 1QFY19 came in at Rs 7.0bn
Due to Ind AS 115, revenue was higher by Rs 1.2bn
EBIDTA margins increased 293bps YoY to 25.7 per cent
Interest cost increased 3.4 per cent YoY to Rs 628mn
1QFY19 Real Estate pre-sales came in at 0.43mn sqft; Rs 2.2bn (+37 per cent YoY)
Realisation was Rs 5,122/sqft
BEL held an annual showcase in Jul-18, which saw 9 new launches and has driven sales of nearly 0.6mn sqft (office+ resi) in 2QFY19 so far
With a ramp up in the annuity portfolio we expect leasing to contribute Rs 3.7bn in FY20E
We maintain BUY with a SOTP-based target price of Rs 299 per share.
