Motilal Oswal Reiterates Buy Recommendation for Brigade Enterprises, Targets Rs 910
Motilal Oswal Reiterates Buy Rating on Brigade Enterprises
Brigade Enterprises (BRGD) has reported a 3% year-over-year (YoY) increase in pre-sales to INR25.2 billion in 4QFY26, falling short of estimates by 6.7%. The company's volumes stood at 2 million square feet (msf), a 4% decline from the previous year.
During the quarter, BRGD launched seven residential projects with a total development area (TDA) of 4msf across Chennai, Bengaluru, and Hyderabad. The company sold approximately 2msf, with a significant portion coming from Brigade Lumina in North Bengaluru, which sold about 85% of its units. Brigade Belvedere, another project, sold about 19.7% of its units, with 150 units sold out of 760 launched.
| Project | TDA (msf) | Units Sold | Percentage Sold |
|---|---|---|---|
| Brigade Lumina | 0.6 | 85% | |
| Brigade Belvedere | 1.04 | 150 | 19.7% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Motilal Oswal's research report values Brigade Enterprises' residential segment using a discounted cash flow (DCF) of cash flows and the commercial segment at a capitalization rate of 8.5%. The research firm has reiterated its BUY rating on the company, with a target price (TP) of INR910, implying a potential upside of 18%.
Investor Takeaway
Motilal Oswal recommends buying Brigade Enterprises with a target price of Rs 910.
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