Brigade Enterprises Q4 Results Review - Residential Back In Action: Dolat Capital

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Presales at Rs14.9bn increased 47% QoQ and 45% YoY with sales volume increasing 55% QoQ and 53% YoY. Notably new launches during the Q accounted for 60% of the presales. Core FCFE increased 29% QoQ and 4% YoY to Rs3.5bn aided by robust collections of Rs14.6bn (+10% YoY and QoQ). The surplus cash is utilized in retiring pending land liabilities amounting to Rs4.8bn. As of FY23, land liabilities stand at Rs7bn; equating to two quarters of surplus CF. Leasing activity of 0.2msf is holding steady QoQ; taking FY23 leasing to 1.2msf. Active pipeline of >1msf intact in the office portfolio. The retail portfolio witnessed 78% YoY increase in retail sales consumption in FY23 while footfalls in malls jumped 106% YoY. Maintain Reduce with a revised TP of Rs590 (vs. Rs560). Price revision is on account of incorporating new project additions (FY23 BD amounting to Rs50bn in GDV) and scaling our presales higher by 2-5% for FY24-FY25. Over the med-term, we see Brigade delivering stable residential market share in its core market Bengaluru and achieving modest rental growth. However, unfavorable positioning on land reserves relative to peers remains a drag on FCF. Key upside risks to earnings and TP include higher sales velocity in new launches, margin accretive land acquisition, visibility on new segments (warehousing / industrial), higher FSI for existing & upcoming commercial projects and geographic diversification with scale..Brigade Enterprises Q4 Results: Profit Jumps On Exceptional Gain, Revenue Dips.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Brigade Enterprises Q4 Results Review - Residential Back In Action: Dolat Capital

Expect stable residential market share in its core market Bengaluru and achieving modest rental growth.

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Brigade Enterprises Q4 Results Review - Residential Back In Action: Dolat Capital

Expect stable residential market share in its core market Bengaluru and achieving modest rental growth.

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