Brigade recorded Rs 3 billion revenue from annuity portfolio in Q1 FY26 and the brokerage expects similar quarterly run-rate to continue for coming fiscal. However, Brigade is in-process of building up ~2.55 msft incremental assets for annuity which will commercialize from FY27E.
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Yes Securities Report
Though Brigade Enterprises Ltd. witnessed a tepid start to this fiscal, company has plans to launch ~12.9msft residential projects in coming four-quarters, of which Brigade Enterprises' share will be ~9.47 msft. Till date company has launched ~2.56 msft projects, of which 1.63 msft was launched in Q1 FY26 and recently company announced the launch of 0.933 msft project in Bengaluru.
Brigade has planned couple of more project launches in coming quarter and balance will be launched in following 9M FY26. Management stated that they have approvals for ~50% of planned gross development value and do not foresee any challenges for balance launches as well.
We reckon ~9.7msft should get launched in FY26 and balance 3.2msft will be launched in FY27.
We expect launch momentum to pick-up from hereon which will fuel the presales growth for coming fiscal. We have valued the company on SOTP basis and arrived at a target price of Rs 1,203 (including 25% business development premium); implying an upside of 24% from current market price.
Hence, we initiate on Brigade Enterprises by assigning a Buy rating.
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