Shares of Brigade Enterprises fell as much as 2% to the day’s low of Rs 868.10 on the BSE on Monday, December 15, after it announced that the Income Tax Department had initiated searches at its registered office and multiple locations related to the company. The searches started on December 9 and ended on December 13.In an exchange application last weekend, Brigade companies said the country and its officials have fully cooperated with authorities and provided all required information. The company added that its business operations remain unaffected and continue without interruption.
The stock is trading at Rs 886, with analysts assigning a price target of Rs 1,279, suggesting an upside potential of 44.3%. Out of twelve analysts covering the stock, the consensus rating is Strong Buy. The stock is down almost 30% since the beginning of the year. Last week, the company acquired a 4.04 hectare plot in Neopolis Phase 3, Hyderabad, for around Rs 118 crore per hectare through an auction from the Hyderabad Metropolitan Development Authority (HMDA). The total deal value is estimated at over Rs 475 crore.
This is the developer’s second major investment in the fast-emerging office-retail corridor, following the earlier acquisition of Plot No. 8 in the same district, which is now being developed as Brigade Gateway, Hyderabad.
Brigade Enterprises Ltd posted a strong performance in the September quarter, with consolidated net profit rising 36.5% year-on-year to Rs 163 crore, compared to Rs 119 crore in the same period last year.
The Bengaluru-based real estate developer also reported a 29% increase in quarterly revenue to Rs 1,383 crore, compared to Rs 1,072 crore a year earlier. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 12% to Rs 327.8 crore, although EBITDA margins softened to 23.7%, compared to 27.3% in the year-ago quarter.
Brigade Enterprises, headquartered in Bengaluru, has almost four decades of experience in developing office, retail, residential, hospitality and educational facilities. The group has delivered skyline-defining projects in Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Thiruvananthapuram and GIFT City.
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