Brigade Enterprises share price jumps over 4% on record pre-sales in FY24; Should you buy?

Brigade Enterprises share price rallied over 4% in early trade on Thursday after the company reported record sale bookings in FY24. Brigade Enterprises shares jumped as much as 4.85% to ₹1,043.05 apiece on the BSE.

The Bengaluru-headquartered real estate developer said its sale bookings hit a record ₹6,013 crore in FY24, registering 46% annual rise, led by better demand for its housing projects. The company’s presales in the fourth quarter of FY24 was also the highest ever for a quarter at ₹2,243 crore.

Brigade Enterprises’ real estate sales volumes in FY24 was 7.55 million square feet, while that in Q4FY24 was 2.72 million square feet. 

Read here: Brigade Enterprises reports record sale bookings of ₹6,013 crore in FY24

In its quarterly business update, the company said its average realisation for FY24 increased by 23% annually, while collections across the group rose to ₹5,915 crore from ₹5,424 crore in FY23.

Under the operational Leasing portfolio, leasing grew by 14% YoY, while in the Hospitality vertical, average occupancy stood at 72%, growing 3 percentage points, and ARR stood at around ₹6,480 recording around 8% growth in FY24. 

Antique Stock Broking believes Brigade Enterprises’ increasing footprints outside the home market of Bengaluru (Chennai + Hyderabad) coupled with a strong launch pipeline of ~12.6 million sq. ft. (residential) gives it strong growth visibility. 

“Improved leasing traction and low vacancy of its rental portfolio drives optimism for its upcoming rental assets (6.33 mn sq. ft.). Another positive is the sustained robust performance in the hospitality business,” the brokerage firm said. 

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Antique Stock Broking revised its sales booking estimates by 15% and 10% over FY25 – FY26E to ₹65 billion and ₹71 billion.

It maintained a ‘Buy’ rating and raised Brigade Enterprises share price target to ₹1,439 from the previous ₹1,344, valuing the company on a SoTP-based EV/ EBITDA multiple of 8x on implied EBITDA of FY26. 

Brigade Enterprises share price has gained over 21% in one month and more than 15% year-to-date (YTD). In the past one year, Brigade Enterprises shares have jumped more than 107%.

At 9:40 am, Brigade Enterprises shares were trading 4.22% higher at ₹1,036.70 apiece on the BSE. 

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.