Brigade Enterprises rises for sixth day in a row, longest winning streak in seven weeks

Real estate developer Brigade Enterprises' shares jumped on Tuesday, continuing to rise for the sixth session in a row in the longest winning streak since October 13, after the Bengaluru-headquartered company signed a joint development agreement to develop a luxury residential project with a gross development value of Rs 300 crore. The stock of Brigade Enterprises (), which has a strong project pipeline, jumped by as much as Rs 47, or 5.6 per cent, to Rs 891.7 apiece on BSE. 

The project, spread over four acres of land in Kurubarahalli, Mysore, next to the JW Golf Club Mysuru, will have a developable area of about 0.40 million square feet, the developer said in a regulatory filing post-market hours on Monday. 

The deal adds to Brigade Group’s residential portfolio in the city over 25 residential projects, including Brigade Symphony, Brigade Topaz, Brigade Mountain View, and Brigade Palmgrove.

"Brigade has been a strong brand in Mysuru over the last three decades. This luxury project will consist of large units including penthouses, designed with premium amenities and situated right next door to the Mysore Golf Club with beautiful views of Chamundi Hills. With this new launch, we reaffirm our commitment to this growing city," said Pavitra Shankar, Managing Director at Brigade Enterprises.

The group has a pipeline of projects spread over around 13 million square feet in Bengaluru, Hyderabad and Chennai for the year ahead, including 11 million square feet in the residential segment. 

Last week, the company launched a jointly developed residential project, Brigade Sanctuary, spread across 14 acres on the Whitefield-Sarjapur Road in Bengaluru. The project, estimated to have a total development area of around two million square feet, is strategically located with convenient access to Sarjapur, Varthur, Whitefield, and the outer ring road, and has a gross revenue potential of Rs 2,000 crore. 

The company said there has been a notable surge in demand for premium residences in the city. 

Brigade Enterprises Q2 results

The real estate company staged a strong performance last month, with a 72 per cent jump in consolidated net profit to Rs 133.5 crore for the July-September period. The company registered revenue growth of 55 per cent to Rs 1,367 crore, and its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by half to Rs 324.8 crore, according to a regulatory filing. 

The property developer's margin, a key measure of profitability, remained steady at 24 per cent.                      

The company is seeing healthy demand for mid-income and aspirational houses in the southern parts of the county, which helped it achieve strong pre-sales growth in  the quarter under review, its management said.         

How analysts view Brigade

Brokerage maintained a 'buy' rating on the real estate stock with a target price of Rs 837 per share after the earnings announcement.

Brigade Enterprises posted a healthy operational performance across verticals in the quarter ended September, and a robust launch pipeline and improving occupancy in the hospitality and leasing segments will ensure a sustainable growth trajectory for the company, according to the brokerage. 

How Brigade Enterprises shares have fared in the past

Brigade Enterprises shares have rewarded investors with a return of 86 per cent so far in 2023, outperforming gains of 14 per cent and 69 per cent in the Nifty50 and Nifty Realty indices, respectively.

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