BRIGADE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.2

📊 Core Financials

• Quarterly PAT declined from 55.0 Cr. to 50.2 Cr. (-44.6% YoY), showing earnings pressure.
• ROE at 8.80% and ROCE at 9.09% indicate modest efficiency and profitability.
• Debt-to-equity ratio of 0.32 shows moderate leverage, manageable but worth monitoring.
• Dividend yield at 0.29% provides limited shareholder returns.

💹 Valuation Indicators

• P/E Ratio: 52.4 vs Industry PE of 33.7 → Overvalued compared to peers.
• P/B Ratio: Current Price / Book Value ≈ 3.44 → Expensive relative to assets.
• PEG Ratio: 3.57 → Suggests weak earnings growth relative to valuation.
• Intrinsic Value Zone: ₹800–₹850 (near 52-week low and below DMA 200).

🏭 Business Model & Competitive Advantage

• Core operations in real estate development, including residential, commercial, and hospitality projects.
• Strong brand presence in South India with diversified portfolio across property segments.
• Competitive advantage lies in established reputation and integrated real estate offerings.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive accumulation between ₹800–₹850.
• Long-Term Holding: Suitable for investors seeking real estate exposure, but valuation risks and earnings pressure remain.

✅ Positive

• Established brand presence in South India.
• Diversified portfolio across residential, commercial, and hospitality projects.
• Moderate debt-to-equity ratio (0.32).

⚠️ Limitation

• High P/E ratio (52.4) compared to industry average.
• Weak ROE (8.80%) and ROCE (9.09%).
• Quarterly PAT decline (-44.6%).
• Low dividend yield (0.29%).

📉 Company Negative News

• Decline in quarterly profits (50.2 Cr. vs 55.0 Cr.).
• Reduction in FII holdings (-0.66%) and DII holdings (-0.16%).

📈 Company Positive News

• EPS at ₹16.6 provides a stable earnings base.
• Stock trading near support levels (₹813 low), offering potential entry opportunity.

🌐 Industry

• Real estate sector driven by urbanization, infrastructure growth, and housing demand.
• Industry PE at 33.7 indicates moderate valuation compared to Brigade’s premium.
• Sector outlook supported by government initiatives in affordable housing and commercial expansion.

🔎 Conclusion

• Brigade Enterprises has a strong brand and diversified portfolio but faces earnings pressure.
• Currently overvalued relative to industry peers with weak return metrics.
• Accumulation recommended near ₹800–₹850 for favorable long-term exposure to real estate growth.