BENGALURU (Reuters) – Indian real estate developer Brigade Enterprises’ first-quarter profit more than doubled on Monday, helped by price hikes in its key Bengaluru market and sustained housing demand.
The company’s consolidated net profit rose to 837.2 million rupees (about $10 million) in the quarter ended June 30, from 385.3 million rupees a year ago.
Revenue from operations jumped nearly 65% to 10.78 billion rupees, bolstered by its mainstay real estate segment whose revenue more than doubled.
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KEY CONTEXT
Housing prices, on average, jumped 13%-39% year-on-year in India’s top seven realty markets during the quarter, with prices in Bengaluru city rising 32%, according to data from real estate consultancy Anarock Research.
Home sales in Bengaluru climbed 9% in the April-June period as buyers lapped up pricier apartments, unfazed by high borrowing rates.
Meanwhile, muted launches, owing to election-linked regulatory delays, weighed on rival Prestige Estates Projects’ quarterly profit, while Sobha will report its results later this week.
PEER COMPARISON
Valuation Estimates (next 12 Analysts’ sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth (%) rating* analyst price yield
s target** (%)
Brigade Enterprises 54.13 22.54 17.59 55.01 BUY 12 1.17 0.16
Ltd
Prestige Estates 61.75 22.72 25.39 -19.07 BUY 16 1.21 0.09
Projects Ltd
Sobha Ltd 50.23 27.12 24.91 296.67 HOLD 12 1.09 0.15
DLF Ltd 54.26 66.28 19.88 24.45 HOLD 15 0.92 0.62
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 84.1629 Indian rupees
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)
