India's Brigade Enterprises' profit more than doubles on higher housing prices, demand

Prestige Estates Projects

05/08/2024 14:51

BENGALURU, Aug 5 (Reuters) - Indian real estate developer Brigade Enterprises'  BRIG.NS  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. 
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JS28O
    
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'  PREG.NS  quarterly profit, while Sobha  SOBH.NS  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   BRIG.NS   54.13   22.54    17.59       55.01     BUY           12      1.17           0.16
 Ltd                                                                                                     
 Prestige Estates      PREG.NS   61.75   22.72    25.39       -19.07    BUY           16      1.21           0.09
 Projects Ltd                                                                                            
 Sobha Ltd             SOBH.NS   50.23   27.12    24.91       296.67    HOLD          12      1.09           0.15
 DLF Ltd               DLF.NS    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


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Brigade Q1    https://tmsnrt.rs/3YyJw76
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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))