Shares of this midcap company jumped around 1 percent in Friday’s trading session after launching a residential project with a revenue potential of Rs. 1,100 crores. The shares have delivered a multibagger return of 133 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 31,269 crores, the shares of Brigade Enterprises Ltd started Friday’s trading session on a higher note at Rs. 1,374 compared to the previous close of Rs. 1,388.80. During the trading session, the shares hit a high of Rs. 1,388.80, gaining around 1 percent and are currently trading at Rs. 1,354 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced it had launched a project “Brigade Insignia”, a premium residential project in Yelahanka, Bengaluru.
The project comprises six towers housing 379 units of spacious 3, 4, and 5 BHK apartments (Limited edition Sky Villas) spread across a sprawling 6-acre land parcel. The project has a revenue potential of Rs. 1,100 crores.
Furthermore, the company stated that the project promises a lifestyle of unparalleled comfort and luxury. While the thoughtfully designed residences are crafted to maximize light and ventilation, the expansive 6-acre campus ensures ample open space for residents to unwind and connect with nature. The total development area will be around 0.90 million sq. ft.
Additionally, apartments at Brigade Insignia are available at a ticket size ranging from Rs. 3 crores to Rs. 9 crores. The project is expected to be completed in June 2029.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 45 percent from Rs. 1,174 crores during the December quarter to Rs. 1,702 crores in the March quarter. In addition, the net profits magnified by 278 percent from Rs. 56 crores to Rs. 211 crores during the same period.
Future Plans:
The company has planned a pipeline of new residential launches totalling 12.61 million square feet for the fiscal year 2025. Further, Brigade Enterprises is expecting a 30 percent growth in sales booking for FY 25.
Moreover, the company is looking to expand to Tier 2 cities like Kochi and Mysore and is in discussions for partnerships to increase the hospitality portfolio.
Important Financial Ratio:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 9.18 percent during FY 22-23 to 12.37 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 8.69 percent to 11.97 percent during the same timeframe.
Company Profile:
Headquartered in Bangalore, Brigade Enterprises is primarily engaged in real estate development, leasing, hospitality, and related services across major cities in South India including Bangalore, Mysore, Kochi, Hyderabad, Mangaluru, Chikmagaluru, Ahmedabad, and Chennai.
Written By Vaibhav Patil
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