Stocks to Buy Today: On 26 September 2023, the financial services firm ICICI Securities Limited published the latest research report on Brigade shares, assigning a ‘buy’ rating to the stock. The comprehensive analysis also provides valuable insights into the company’s financial health.
ICICI Securities Limited is Bullish on Brigade and has recommended a ‘buy’ rating on the stock with a target price of Rs 695. Let’s take a closer look at their recommendations for the Brigade share price target set by ICICI Securities Limited.
ICICI Securities Limited Research Report: Brigade Share
Brigade Enterprises has been aggressive in its expansion strategy this year, having acquired three large land parcels in Hyderabad, Chennai, and Bengaluru, collectively estimated to have a Gross Development Value (GDV) of INR 53bn. The company is gearing up for a substantial residential launch pipeline of approximately 8 million square feet (msf) over the upcoming year. ICICI Securities projects residential sales bookings of INR 45.8bn in FY24E, and INR 51.3bn in FY25E for Brigade.
The report also indicates a promising future for the company’s rental segment. Brigade Enterprises is projected to achieve a Compound Annual Growth Rate (CAGR) of 16% in rental Net Operating Income (NOI) from FY22-25E, amounting to INR 6.2bn. This growth is anticipated due to the leasing of vacant space in the Tech Gardens in Bengaluru and the Brigade Twin Towers project, which is expected to be fully operational by FY25E.
In the first quarter of FY24, Brigade reported sales bookings of 1.5msf worth INR 10.0bn, marking a 22% YoY growth in terms of value. The company’s recent acquisitions include a 10-acre land parcel in Kokapet, Hyderabad for INR 7bn, which has a potential saleable area of 3.5msf and a projected launch in the latter half of FY25.
Current residential prices in this micro-market range between INR 8,000-10,000/psf. The company also acquired land in Sholinganallur, Chennai, and North Bengaluru, with estimated GDVs of INR 10bn and INR 8bn, respectively.
On the leasing front, while Brigade boasts a 100% occupancy rate in non-SEZ spaces, certain projects like Tech Gardens and the World Trade Centre in Chennai are facing vacancies due to delays in the SEZ de-notification policy. Nonetheless, Brigade is targeting 100% occupancy across its portfolio by March 2024, up from the current 84%.
Company Details
| Market Cap (INR) | 136 billion |
| Market Cap (USD) | 1,637 million |
| Bloomberg Code | BRGD IN |
| Reuters Code | BRIG.BO |
| 52-week Range (INR) | 650 – 431 |
| Free Float (%) | 54.0 |
| ADTV-3M (mn) (USD) | 1.5 million |
Company Shareholding
| Name | Mar ’23 | Jun ’23 |
|---|---|---|
| Promoters | 43.8 | 43.8 |
| Institutional investors | 38.9 | 39.1 |
| MFs and others | 22.6 | 23.2 |
| FIs/Banks | – | – |
| Insurance | 1.2 | 1.3 |
| FIIs | 15.1 | 14.6 |
| Others | 17.3 | 17.1 |
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