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FUNDAMENTAL
ST CK

Federal Bank Ltd. developments and affordable homes. As a part
of diversification strategy, company aims to
Accumulate Target Price Rs 350 increase revenues from the leasing business.
Value Parameters
532929 Investment Rationale
BSE Code BRIGADE
NSE Symbol Strong portfolio of ongoing and planned
CMP (As on 04th Dec, 2017) Rs 302 development projects located in attractive
Face Value Rs 10 south India property markets with Robust
52 Week High/Low Rs 322/145 Bangalore market fundamentals and preference
Market Cap (Rs cr) 4068 for organized players post RERA should aid
EPS (TTM) 13.71 BEL’s well-balanced portfolio and currently in
PE Ratio (x) 22.97 the process of developing 30 million square feet
across seven cities over the next five years. As
Shareholding Pattern % (Sep’ 17) per management statement in Annual report
Promoters Dlls FIIs Other of FY17 BEL will be launching 11.53 mn. sq.
ft. during the FY17-18. This will comprise of
Others Promoters 5.02 mn. sq. ft. of real estate space, 5.76 mn. sq.
26% 47% ft. of Commercial Space and 0.13 mn. sq. ft. of
Hospitality space. BEL entered into an MOU
DII with Intercontinental Hotels to initially set up 10
14% Holiday Inn Express hotels out of total 20 hotel
properties planned across by 2020.
FI I
13% Outlook & Valuation

Company Overview Brigade, September Quarter sales were up
8% YoY to Rs 484 Cr and PAT was up by 38%
Brigade Enterprises Ltd has a diverse and mature YoY to Rs 41.62 Cr. Company plans to increase
portfolio of real estate, lease rental and hospitality focus on hospitality and leasing business and is
businesses and successfully expanded footprints expected to improve on its sales with diversified
beyond Bengaluru and Mysuru to other high-growth portfolio.
potential cities like Chennai, Hyderabad, Kochi and
GIFT City, Gujarat. It has an in-house, fully integrated BEL highlighted the fact that sales for Q2FY18
property development team comprising engineers and were slow because of RERA-related compliance.
architects who oversee the development of properties Going forward sales are expected to pick up
from inception to completion. Its land bank strategy from Q4FY18, as BEL is launching 2.4 mn sq ft
includes outright purchase of land parcels as well under both residential and commercial project,
as entering into joint development its product mix 2mn sq ft of commercial-lease project and
consist of premium residential apartments, mixed use building 0.43 mn sq ft of two IBIS Hotels in the
second half of FY17-18.
4 ARIHANT CAPITAL ¡ dECembER 2017
Our Conservative SOTP valuation for BEL
comes to Rs 350 per share considering projects
that have visibility over next year. We have
‘ACCUMULATE’ rating on this stock.