This Mid-Cap Stock Has Gone Up 25% YTD: Why Analyst Sees Further 25% Rally

Shares of Brigade Enterprises have gone up over 25% since the start of the year. Analysts at HDFC Securities see the stock going further up as housing demand and prices continue to rise.

The Brigade Enterprises Analyst: Parikshit D Kandpal-led analyst team at HDFC Securities maintained the ‘buy’ rating for the stock with a price target of ₹739 – an over 27% upside from the stock’s current market price of around ₹581.

The Brigade Enterprises Thesis: The company noted that the real estate company registered FY23 (April 2022-March 2023) presales of ₹4,100 crore with an area booked of 6.3 million square feet. The firm attributed the robust presales to adding 14 new properties during the year. Brigade launched thirteen new residential projects with a saleable area of 5.27msf and one commercial project with a saleable area of 0.19msf.

The brokerage firm added that with housing prices rising by 8-10% in FY23, the realtor’s management expects it to increase further by 5% in FY24. The company expects sales momentum to persist, projecting a 9% year-on-year increase in sales due to robust demand. The brokerage also highlighted that the group plans to diversify its business portfolio by venturing into the warehousing and logistics as well as data centre verticals.

The analysts also said that the company has a robust business development pipeline and a healthy
balance sheet that bodes well for growth.

Price Action: Brigade share price was down 3.05% to trade at ₹579.10 in early trade on Monday.

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Posted In: Analyst ColorPrice TargetReiterationAnalyst RatingsBrigade EnterprisesHDFC Securities