Although Bengaluru has been crucial in Brigade Enterprises' success, the company has significantly broadened its presence by extending its operations to other key cities, including Chennai and Hyderabad, in recent years. This expansion is expected to account for 30-40% of the company's presales in the near future (total ~40% of total current land bank is for Hyderabad and Chennai).
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Motilal Oswal Report
Brigade Enterprises Ltd. posted a 36% CAGR in presales over FY20-24 and is expected to deliver more than 24% growth during FY25-27, guided by its strong launch pipeline and scale-up in Hyderabad and Chennai. Collections are expected to increase to Rs 94 billion by FY27, posting a 34% CAGR over FY24-27, which should translate into a cumulative operating cash flow of Rs 100 billion over the same period.
Additionally, the commissioning of rental assets across geographies is expected to drive a 15% CAGR in rental income over FY24-27.
The listing of its hospitality portfolio is also expected to bring additional cash into the company.
We believe Brigade Enterprises offers strong growth visibility in the coming years, and we reiterate our Buy rating with a revised target price of Rs 1,415/share, which implies a 44% upside.
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