Brigade Enterprises Stock price: Kotak stock price upgraded Brigade Enterprises stock to an ‘add’ from a ‘reduce’ with an unchanged target price of ₹1,025.
Brigade Enterprises’ share price has been on an upward trend for the fourth consecutive session, showing a significant increase of almost 8 percent during morning trading on the Bombay Stock Exchange (BSE) on Friday, March 22. The day started with Brigade Enterprises’ share price at ₹906.30, a slight rise from its previous closing value of ₹904.90. The stock surged to an intraday high of ₹974.35 within the trading hours of Friday. As of 10:45 am, Brigade Enterprises’ stock was trading 6.60 percent higher at ₹964.60.
The stock experienced a significant surge in activity following the upgrade by brokerage firm Kotak Securities. They raised the stock rating from ‘reduce’ to ‘add’ while maintaining the target price at ₹1,025. The rationale behind the upgrade was the firm’s confidence in the company’s robust business prospects and performance outlook.
“We are upgrading Brigade Enterprises from a ‘reduce’ to an ‘add’ rating, while maintaining an unchanged fair value of ₹1,025. The stock has declined by 16% since our downgrade, possibly due to apprehensions about a prospective halt in construction activities in Bengaluru amid the local water scarcity issue.,” Kotak said.
“While the water crisis may exacerbate as we head into the summer season before a potential respite during the monsoon period, the underlying business prospects continue to shine for Brigade. The company has demonstrated robust performance across various business segments,” the brokerage firm elaborated.
Brigade Enterprises’ share price hit its 52-week high of ₹1,107.65 on the Bombay Stock Exchange (BSE) on February 7, 2022. Following this peak, the stock has encountered profit booking. As of the latest market update, the current trading price stands at ₹974.35. This reflects a decline of approximately 12% from its 52-week high within a timeframe of about one-and-a-half months, indicating a notable fluctuation in the company’s stock value over this relatively short period.
According to a report by Kotak stock price, it is highlighted that despite the robust growth prospects seen across various business segments, the current trading value of Brigade Enterprises’ shares is evaluated at six times the adjusted EV/EBITDA based on the FY26E earnings forecast. Kotak sees significant value in this particular stock amidst the current market scenario. They perceive the existing weakness in the stock as a favorable opportunity to strategically enhance their portfolio by adding it to their investments.
“While acknowledging the potential for a temporary construction ban in Bengaluru, we are optimistic that the monsoon’s arrival will alleviate the issue. Government initiatives are expected to provide long-term solutions to the water crisis in the city. We view the current stock performance weakness as a chance to upgrade the stock to ‘add.”, said Kotak.
Meanwhile, Brigade Enterprises disclosed in a BSE filing on March 20 that the renowned rating agency ICRA has recently bestowed a long-term credit rating of ICRA AA-. This rating was specifically assigned for the augmentation in bank facilities, amounting to ₹500 crores. This increase raises the total bank facilities from ₹2,500 crore to ₹3,000 crore. Notably, the outlook for this rating has been deemed stable, reflecting a positive trajectory for the company’s financial standing.
Moreover, the company also stated that the credit rating agency, ICRA, had reiterated its long-term rating of ICRA AA- with a stable outlook and short-term rating of ICRA A1+ for the existing ₹2,500 crore bank facilities. This reaffirmation underscores the company’s financial stability and creditworthiness in the market.
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