Why This Tata Fund-Backed Midcap Stock Is Soaring 8% Today

Shares of Brigade Enterprises surged up close to 8% on Monday to hit a new 52-week high of ₹642.50.

What Happened: The surge today comes as domestic brokerage firm ICICI Direct maintained its ‘buy’ rating with a price target of ₹745. The target stands at an upside of 25% from the stock’s last closing price of ₹595.

The firm in its note said that the company achieved significant growth in its residential sales volume in FY23 (April 2022-March 2023), which amounted to approximately 6.1 million square feet (msf) valued at ₹3,907 crore. Going forward, the analysts highlighted that the company has a robust launch pipeline of 7.9 msf planned for the next four quarters, in addition to around 3 msf of unsold inventory in ongoing projects. This positions BEL for continued growth in its residential sales, the brokerage noted.

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The analyst also pointed out that the company boasts of an operational leasing portfolio encompassing 8.7 msf of commercial and retail assets, with 7.45 msf already leased. The vacancies primarily arise from SEZ (special economic zones) spaces, owing to delays in SEZ denotification policies.

The firm said that the company is actively pursuing leasing opportunities, with a pipeline of 1.7 msf, aiming to fully lease the remaining space by the end of FY24. Additionally, the Hospitality portfolio, consisting of eight operational hotels with approximately 1500 keys, is showing signs of improvement and stands to benefit from major events such as the Cricket World Cup.

Price Action: Brigade Enterprises’ share price was up 7.54% to trade at ₹639.85 in early trade on Monday.

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Posted In: Analyst ColorPrice TargetReiterationAnalyst RatingsMoversTrading IdeasBrigade EnterprisesICICI Direct