Following the announcement that the Income Tax Department had commenced search operations at its registered office and several locations associated with the company Shares of Brigade Enterprises experienced a decline of up to 2%, reaching a low of Rs 868.10 on the BSE on Monday, December 15. These searches took place from December 9 to December 13.
In a filing to the exchange over the weekend, Brigade Enterprises stated that it and its officials have fully cooperated with the authorities by providing all necessary information. The company further noted that its business operations remain unaffected and are proceeding without any interruptions.
The stock is currently trading at Rs 886, with analysts setting a target price of Rs 1,279, indicating a potential upside of 44.3%. Among the 12 analysts monitoring the stock, the consensus rating is Strong Buy.
The stock has decreased by nearly 30% since the start of the year. Last week, the company secured a 4.04-acre land parcel in Neopolis Phase 3, Hyderabad, for approximately Rs 118 crore per acre through an auction conducted by the Hyderabad Metropolitan Development Authority (HMDA).
The total value of the deal is estimated to exceed Rs 475 crore. This acquisition represents the developerās second significant investment in the rapidly developing office-retail corridor, following its previous purchase of Plot No. 8 in the same area, which is currently being developed as Brigade Gateway, Hyderabad.
Brigade Enterprises Ltd reported a robust performance in the September quarter, with consolidated net profit increasing by 36.5% year-on-year to Rs 163 crore, up from Rs 119 crore in the same quarter last year. The Bengaluru-based real estate developer also noted a 29% rise in quarterly revenue to Rs 1,383 crore, compared to Rs 1,072 crore a year prior. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 12% to Rs 327.8 crore, although EBITDA margins decreased to 23.7% from 27.3% in the corresponding quarter of the previous year.
Brigade Enterprises, headquartered inĀ Bengaluru, has nearly four decades of experience in developing office, retail, residential, hospitality and educational assets. The group has delivered skyline-defining projects across Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Thiruvananthapuram and GIFT City.
