Brigade Enterprises rallies over 13% to new high as CRISIL reaffirms its long-term rating

The company also informed that it has acquired an additional stake of 4.53 percent in the equity shares of BCV Developers Private Limited, a subsidiary of the Company from its existing shareholders who are Joint Venture Partners. Accordingly, the shareholding of the Company has been increased from 62.51 percent to 67.04 percent in BCV Developers Private Limited, the firm said in a press release.

The stock rose as much as 13.2 percent in intra-day deals to its record high of ₹983.65. It has now surged over 128 percent from its 52-week low of ₹430.95, hit on January 13, 2023.

The stock has rallied 86 percent in the last 1 year and around 2 percent in January so far, extending gains for the 4th straight month. It gained almost 10 percent in December 2023, 33 percent in November and over 8 percent in October.

In the September quarter, the firm posted a 117 percent year-on-year (YoY) increase in net profit at ₹112.50 crore on the back of strong new bookings of 1.67 million square feet valued at ₹1,249 crore, up 23 percent YoY. Its total income for the September quarter grew 54.35 percent to ₹1,407.92 crore, from ₹912.19 crore in the same period last year, driven by the residential segment that continued to show robust growth.

With a robust pipeline of launches in Bengaluru, Chennai, and Hyderabad, the management believes that the company will sustain the momentum going forward.

“All business verticals contributed significantly to the growth in Q2FY24. The residential segment continued to outperform with strong absorption across key markets, heightened end-user interest, stable registration processes, steady home loan rates, and excellent response to new launches,” said the firm post earnings.

Meanwhile, CRISIL noted that driven by BEL’s established market position and healthy launch pipeline, the performance of the residential segment is expected to remain healthy with sales expected to be in the range of 6.5-7.5 million sq ft (msf) in FY24, similar to FY23.

“Brigade has a strong launch pipeline of 11 msf over the next four quarters which should drive sales volumes ahead. With a lean balance sheet, well-placed hospitality portfolio, and likely ramp up in leasing ahead, Brigade is one of the well-placed realty developers poised for growth ahead,” ICICI Securities said in a note.

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Published: 04 Jan 2024, 11:16 AM IST