ICICI Securities has given Buy recommendation for Brigade Enterprises with a target price of Rs. 595 in its research report issued on Aug 27, 2022
ICICI Securities research report on Brigade Enterprises
FY22 was another challenging year for Brigade Enterprises’ (BRGD) with Covid impacting the leasing and hospitality segments in H1FY22. However, the company clocked a resilient performance with FY22 residential sales of 4.7msf worth Rs30.2bn (up 9% YoY in value terms) and also reduced its share of net debt by Rs9.0bn YoY to Rs17.5bn as of Mar’22 aided by a QIP fund raise of Rs5.0bn in Q1FY22. The company’s liquidity position is comfortable and we expect BRGD’s share of rental NOI to grow at 20% CAGR over FY22-25E to Rs6.8bn along with continued traction in residential sales and revival in hotels.
We reiterate our BUY rating with a revised target price of Rs595/share (earlier Rs573) as we roll forward to Mar’24 NAV.