BRIGADE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | BRIGADE | Market Cap | 18,083 Cr. | Current Price | 739 ₹ | High / Low | 1,332 ₹ |
| Stock P/E | 44.4 | Book Value | 252 ₹ | Dividend Yield | 0.34 % | ROCE | 9.09 % |
| ROE | 8.80 % | Face Value | 10.0 ₹ | DMA 50 | 850 ₹ | DMA 200 | 955 ₹ |
| Chg in FII Hold | -0.53 % | Chg in DII Hold | 0.27 % | PAT Qtr | 93.9 Cr. | PAT Prev Qtr | 50.2 Cr. |
| RSI | 26.8 | MACD | -38.8 | Volume | 95,603 | Avg Vol 1Wk | 5,87,642 |
| Low price | 711 ₹ | High price | 1,332 ₹ | PEG Ratio | 3.03 | Debt to equity | 0.32 |
| 52w Index | 4.60 % | Qtr Profit Var | 3.11 % | EPS | 16.2 ₹ | Industry PE | 30.2 |
💹 Financials: Brigade Enterprises shows modest efficiency with ROE at 8.80% and ROCE at 9.09%, indicating average capital productivity. Debt-to-equity at 0.32 reflects moderate leverage, manageable but worth monitoring. Quarterly PAT improved from 50.2 Cr. to 93.9 Cr., though YoY profit variation is only 3.11%, highlighting limited growth momentum. EPS at 16.2 ₹ supports moderate earnings visibility.
📊 Valuation: The stock trades at a P/E of 44.4, higher than the industry average of 30.2, suggesting premium valuation. The P/B ratio is ~2.9 (739/252), which is reasonable but not cheap. PEG ratio of 3.03 indicates valuations are stretched relative to growth. Dividend yield at 0.34% is modest, offering limited income return.
🏢 Business Model & Advantage: Brigade operates in the real estate sector, focusing on residential, commercial, and hospitality projects. Its competitive advantage lies in brand recognition, diversified portfolio, and presence in South India’s urban markets. Demand is supported by urbanization and infrastructure growth, though the sector remains cyclical.
📈 Overall Health: Financially stable with moderate debt and consistent profitability, but return ratios are modest. RSI at 26.8 indicates the stock is oversold, while MACD at -38.8 suggests bearish momentum in the short term. Long-term fundamentals remain intact, supported by real estate demand, though valuations are demanding.
🎯 Entry Zone: Attractive entry around 710–740 ₹ range, near support levels and oversold RSI zone. Current price of 739 ₹ is reasonable for accumulation, but long-term investors should be cautious given stretched valuation multiples.
Positive
- Moderate debt-to-equity ratio (0.32) ensures financial stability.
- Quarterly PAT improved from 50.2 Cr. to 93.9 Cr.
- DII holdings increased by 0.27%, reflecting domestic institutional support.
- Strong brand presence in South India’s real estate market.
Limitation
- High P/E (44.4) compared to industry average (30.2).
- PEG ratio of 3.03 suggests stretched valuation relative to growth.
- Modest ROE (8.80%) and ROCE (9.09%) indicate average capital efficiency.
- Dividend yield at 0.34% offers limited income return.
Company Negative News
- FII holdings decreased by -0.53%, showing reduced foreign investor confidence.
- Short-term technical indicators (RSI oversold, MACD negative) suggest weak momentum.
Company Positive News
- Quarterly PAT rose from 50.2 Cr. to 93.9 Cr., showing sequential improvement.
- DII holdings increased by 0.27%, reflecting domestic institutional support.
- Strong portfolio across residential, commercial, and hospitality projects.
Industry
- Real estate industry benefits from urbanization and infrastructure growth.
- Industry P/E at 30.2 indicates Brigade trades at a premium valuation compared to peers.
- Sector remains cyclical, influenced by interest rates and economic conditions.
Conclusion
Brigade Enterprises remains a stable real estate player with diversified operations and brand strength. However, modest return ratios and premium valuations limit upside potential. Entry around 710–740 ₹ is advisable for long-term investors, with cautious accumulation recommended given cyclical risks and stretched multiples.