Brigade Enterprise - Research Report

Brigade Group established in 1986 is one of India’s leading property developers with over three decades of expertise in building positive experiences for all stakeholders. Brigade has built landmark buildings and transformed skylines across cites of Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, GIFT City Gujarat, Ahmedabad, and Thiruvananthapuram, with developments across Residential, Office, Retail and Hospitality.  Since its inception, Brigade has completed 280+ buildings and 83+ Mn sft of developed space across a diverse real estate portfolio.

As of Q3 FY24 company has Total 22.17 Mn sft worth of ongoing projects out of which 16.82 Mn sft is Company’s share and remaining are under Lo or JV basis.

Company achieved pre-sales of ~1.70 Mn sft with a sale value of INR 15,244 Mn (including landowner’s space share of 0.14 Mn sft and value of INR 1,249 Mn) in Q3Fy24. The Hospitality SBU continued to show growth momentum; ARR has shown an increase of 6% over Q2 FY24, Occupancies remained stable backed by Domestic passenger travel growth of 16.6% in 9M FY24 over 9M FY23 and going further Increase in international travel from corporate clients and partners are expected to further boost ARRs and occupancy.

So far, company employed total capital of 83692 Mn including Equity and Debt and the segment wise allocation is as shown below:

Company has Total 499 acres of Land at a cost of 33,844 Mn across India out of which it has 323 acres in Bangalore, 130 acres in Chennai, 20 acres in Hyderabad, 20 acres in Kochi, 4 acre in Mysore and 2 acre land in Gift City, Gujarat. Out of total land area company has 57 Mn sft of total project area and the product mix of that project area is as shown below:

 

Fundamentals (FY23-24):

CMP	Rs. 943
52 - week high	Rs. 1108
52 – week low	Rs. 450
Dividend % (consolidated)	0.21%
ROE	9.18 %
BVPS (Rs.)	133.1
Sales (Rs.) (Q2FY24)	9,533 cr.
Debt to Equity	1.43
P/E ratio	37.56
EPS (consolidated)	12.64
P/B ratio	3.45
Market Cap	21,614 Cr.
Face value	Rs. 10

 

 

Financial Results:

Company’s Net Sales was at Rs 1,173.77 crore in December 2023 up 43.09% from Rs. 820.31 crore in December 2022. Its Quarterly Net Profit was at Rs. 73.49 crore in December 2023 up 29.16% from Rs. 56.90 crore in December 2022. Its EBITDA stands at Rs. 296.45 crore in December 2023 up 20.39% from Rs. 246.24 crore in December 2022. Brigade Ent’s  EPS has increased to Rs. 3.18 in December 2023 from Rs. 2.47 in December 2022.

Key Updates:

1. Brigade Group had launched BuzzWorks at WTC Annexe, situated within Brigade Gateway in MalleswaramRajajinagar. Boasting 10 storeys of real estate, WTC Annexe offers over 1 lakh square feet of commercial space in North West Bengaluru. Within this development, BuzzWorks by Brigade Group introduces flexible and managed workspace solutions, catering to the evolving needs of modern businesses.
2. Company has also launched Dioro at Brigade El Dorado, at its 50-acre township, Brigade El Dorado. The project size is around 6.1 million square feet and the company has pegged the potential revenue value of Dioro at Brigade El Dorado, spread over half a million square feet, comprising 525 two-bedroom and three-bedroom units in two towers, at around ₹380 crores.
3. Recently company has announced expansion plans in the residential and hospitality sectors in Chennai. The company has signed a joint development agreement with PVP Ventures Limited to develop 2.5 million square feet, high- rise residential project, spread across 16 acres in the bustling neighbourhood of Perambur, Chennai with a revenue potential of about ₹2000 Crores. Brigade has also signed a 45-year lease agreement to build a 250-room resort on East Coast Road (ECR), and is in talks with leading hoteliers for management of operations.
4. Group has recently signed MoUs with the Government of Tamil Nadu to invest over ₹3400 crores in the state with a potential employment for around 25,000 people over the next three-four years. The company signed two MoUs, one with the Chennai Metropolitan Development Authority (CMDA) and the other with ELCOT, Information Technology and Digital Services Department, Government of Tamil Nadu as part of Tamil Nadu’s Global Investors Meet (GIM) 2024, in the presence of Shri M.K. Stalin, Hon. Chief Minister. Govt. of Tamil Nadu.
5. Sidvin Core-Tech India Private Limited, a leading provider of design engineering services and consulting solutions to oil and gas offshore industry has signed a significant lease agreement with Brigade Group to secure 54,300 square feet of Grade A office space at Brigade Deccan Heights in Northwest Bangalore. Brigade Deccan Heights, strategically located in Yeshwanthpur on the Outer Ring Road in North-West Bengaluru, spans 2.2 acres with a 4.3 lakh square feet development area.
6. Brigade Group, has entered into a Joint Development Agreement (JDA) to develop a premium ‘Grade A’ office space on Sankey Road in Bengaluru’s Central Business District. With a developable area of around 0.20 million square feet, the project has a Gross Development Value of around ₹500 crores.
7. Brigade Hotel Ventures Ltd. (BHVL), a wholly owned subsidiary of

Brigade Enterprises Ltd., is pleased to announce the signing of the first ibis Styles in Mysuru, the cultural capital of Karnataka.

8. Brigade Group has also signed a Joint Development Agreement (JDA) to develop luxury residences of around 0.4 Mn SŌ in Mysuru, with a Gross Development Value (GDV) of Rs. 300 crores. Located in Kurubarahalli, next to the JW Golf Club Mysuru, the project will be spread over 4 acres.
9. Brigade Enterprises, a leading real estate developer in India, announces the launch of Brigade Sanctuary, a prestigious residential project designed to seamlessly integrate contemporary living with the serenity of natural surroundings Spread across 14 acres on the Whitefield-Sarjapur Road, Brigade Sanctuary is a joint development comprising 1275 units with 1-, 3- & 4-bedroom homes and has a gross revenue potential of Rs. 2,000 Cr and total development area of around 2 million sq. ft.
10. Brigade Group has signed a Joint Development Agreement (JDA) with Krishna Priya Estates Pvt. Ltd. and Micro Labs Ltd to develop around 2 million square feet of residential housing in Bengaluru with a Gross Development Value (GDV) of Rs. 2,100 crores. Located in Yelahanka in North Bengaluru and spread over 14 acres, the JDA will add to Brigade Group’s residential portfolio in the city.
11. LEED Platinum Certified IT SEZ Park, Brigade Tech Gardens located in Brookefields was recently inaugurated which is a joint venture between Brigade Group and GIC Singapore, 3.2 million sqft spread across 26 acres. Located at the centre of Bengaluru’s IT corridor.
12. Brigade Group has recently announced expansion plans for its managed office brand, BuzzWorks, today. Brigade currently has 2400 seats with around 99.5% occupancy in various BuzzWorks locations across the country.

In last 3 Years the stock gave a return of 37.30% as compared to the rise of Sensex and Nifty in the same period.

Company has 10.82 mn sft of Upcoming Projects which are planned to be launched in next 4 Quarters which includes 10 residential projects in Bangalore, 3 Residential projects in Chennai and 1 Residential project in Hyderabad. Company has a diverse multi-domain portfolio that covers property development, property management services, hospitality and education. Considering company’s upcoming projects in almost all the prime cities and growth of Real Estate in India in upcoming years due to increasing urbanization, increase in standards of living of people and infrastructural growth of India we can say that company is well poised to enjoy higher stream of revenues in upcoming years. One can invest in this company for a mid-term to long term period.

 

- HET ZAVERI 

- ​info@smartinvestment.in

 

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