Shares of Brigade Enterprises Ltd were in focus today after brokerage Geojit initiated coverage on the real estate player with an ‘accumulate’ call. Geojit sees 15% upside in the realty stock and has assigned a target price of Rs 537 against the previous close of Rs 465.
However, the stock was trading lower in a volatile session today. Brigade Enterprises shares slipped 3.22% to an intraday low of Rs 450.35 on BSE.
The stock has lost 10.38% in a year and fallen 2.25% in 2023.
Brigade Enterprises market cap fell to Rs 10,460 crore on BSE. Total 3413 shares of the firm changed hands amounting to a turnover of Rs 15.56 lakh on BSE. The share hit a 52-week high of Rs 585 on September 15, 2022 and a 52-week low of Rs 385.25 on May 12, 2022.
In terms of technicals, the relative strength index (RSI) of the stock stands at 48.5, signaling it’s trading neither in the oversold zone nor in the overbought zone. The stock has a one-year beta of 0.8, indicating very low volatility during the period. Brigade Enterprises shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The brokerage said, “Pre-sales grew by 25% YoY to 4 million square feet with a value of Rs 2,619 cr (+31% YoY) for 9MFY23. We expect the momentum to continue, aided by a healthy pipeline. Hospitality revenue increased 61% YoY to Rs. 101 cr for Q3FY23. EBITDA increased to Rs 21.1 cr (+17.9% YoY). In Q3 FY23, Average Revenue per Room (ARR) increased by 58% YoY, while occupancy increased by 14%.”
“We have a positive view on Brigade on the back of a robust residential pipeline (9msf), Healthy cash flows, and the revived hospitality segment. But a rising mortgage rate for a longer period can be a headwind. Hence, we assign Accumulate rating to the stock with a target price of Rs. 537 based on SOTP valuation,” it added.
Brigade Enterprises Limited is engaged in the business of real estate development, leasing and related services. The company operates through two segments: Residential and Lease Rental. The company’s portfolio covers property development, property management services, hospitality and education. Its projects are located in cities in South India, including Chennai, Chikmagalur, Hyderabad, Kochi, Mangalore and Mysore. The company through its subsidiary, Brigade Hospitality Services Limited (BHSL) operates its hospitality projects. Its wholly owned subsidiary, Tetrarch Real Estates Private Limited, undertakes real estate development projects of the company.
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