Brigade Enterprises - Result Update - ICICI Securities

Brigade Enterprises (BEL) reported a mixed performance as it reported better-than-expected sales volume but financial reported numbers were marred by one-time impairment loss in investment and hospitality segment on account of Covid-19. The company reported sales volume of 1.05 mn sq feet vs. 0.96 mn sq feet (msf) in Q4FY19, reporting healthy growth of 10% YoY. The presales value was up 25.3% YoY at Rs. 651.2 crore, as realisations were up 13.8% YoY at Rs. 6176/sq feet. Reported revenues de-grew 16.3% YoY to Rs. 635.9 crore, on account of weaker traction in hospitality and malls segment due to Covid-19 impact in the second half of March, 2020. The company provided for one-time impairment loss in investment and hospitality segment on account of Covid-19, of Rs. 20.5 crore. Consequently, reported PAT declined 95% YoY to Rs. 2.7 crore.

Valuation & Outlook

BEL has so far put up a strong performance across segments. However, we expect the impact on hospitality (likely to be a washout for at least a year with steep bottomline losses in FY21) and weak retail footfall in near term, to be a key area of concern. We also lower residential sales volumes estimates for FY21 to 2.2 msf vs. 4.3 msf, notwithstanding 5.3 msf projects launched in FY20 and further 2.7 msf in launch pipeline. Nonetheless, the company has comfortable debt-equity and sufficient liquidity from operational commercial assets to sustain the interim period pain. Hence, we maintain BUY on the stock with revised SoTP target price of Rs. 180/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_BrigadeEnt_Q4FY20.pdf

Shares of BRIGADE ENTERPRISES LTD. was last trading in BSE at Rs.144.8 as compared to the previous close of Rs. 147.55. The total number of shares traded during the day was 12235 in over 517 trades.

The stock hit an intraday high of Rs. 150 and intraday low of 144.7. The net turnover during the day was Rs. 1811118.

Source : Equity Bulls

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