Motilal Oswal Financial Services (MOFSL) released a report on Tuesday, March 25, 2025, reiterating a ‘buy’ rating on Brigade Enterprises, while lowering its target price to ₹1,415 from ₹1,540. The brokerage firm remains optimistic about the company’s growth prospects, driven by its strategic expansion and diversified portfolio.

The report highlights Brigade’s scaling-up efforts in Hyderabad and Chennai, with its expansion outside Bangalore expected to contribute 30-40% of pre-sales. This geographic diversification is set to fuel growth, with pre-sales projected to double, supported by new project launches. MOFSL forecasts Brigade to deliver a robust 24% CAGR in pre-sales, reaching ₹115 billion by FY27.

Collections are also expected to see a significant uptick, rising to ₹94 billion by FY27, reflecting a 34% CAGR over FY24-27. On the rental front, Brigade’s rental assets are anticipated to drive a 15% CAGR in rental income over the same period, with rental growth expected to accelerate after FY26.

MOFSL notes that the listing of Brigade’s hospitality portfolio will bring additional cash into the company, aiding its financial flexibility. The company’s focus on debt reduction is also seen as a positive move, supporting future capital expenditure plans. Additionally, Brigade’s commercial segment is paving the way for the next phase of growth, further strengthening its market position.

The brokerage emphasizes that Brigade offers strong growth visibility, underpinned by its expansion strategy, robust pre-sales, and growing rental income.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.