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Brigade Enterprises Ltd. Stock Analysis

Small Cap
Evaluated by 886 users | BSE: 532929 | NSE: BRIGADE |
Construction - Real Estate
Brigade Enterprises Limited (BEL) was originally set up as a partnership firm between M R Jaishankar and Gita Shankar in 1990. BEL was converted into a private company in 1995 and a public company in July 2007. It develops residential, commercial and retail properties primarily in Bangalore...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Brigade Enterprises Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.28%5.14%5.68%7.16%6.31%8.72%9.14%8.1%8.34%9.35%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4515727768999881,5781,5731,2651,8061,849
Y-o-Y Gr. Rt.-26.9%35.7%15.8%9.9%59.7%-0.3%-19.6%42.8%2.4%
Adjusted EPS (Rs.) 5.993.483.74.963.978.79.868.8411.2613.26
Y-o-Y Gr. Rt.--41.9%6.3%34.1%-20%119.1%13.3%-10.3%27.4%17.8%
Book Value per Share (Rs.) 66.868.971.5575.5377.8489.8799.32114.04112.85124.28
Adjusted Net Profit 10158.562.383.667.2148168181230271
Net Op. Cash Flow (Rs. Cr.) 42.9243125449-1621341469.2230292
Debt to Cash Flow from Ops 18.193.58.111.88-77.458.063.9828.38.316.98
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Brigade Enterprises Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17%13.4%5.5%2.4%
Adjusted EPS 9.2%27.3%10.4%17.8%
Book Value per Share 7.19.87.810.1
Share Price 17.6% 11.8% -0.3% -11.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 9.385.125.256.745.1910.3810.448.989.9311.17
Operating Profit Margin (%) 33.3824.6426.231.7229.9423.5127.2931.726.6926.54
Net Profit Margin (%) 22.3810.248.029.36.89.3510.6914.2712.7414.65
Debt to Equity 0.690.730.840.660.941.120.970.840.830.8
Working Capital Days 819747579551614508596799738853
Cash Conversion Cycle 347328244191192221279342247552
Entity Percentage Holding
Promoters 47.33%
Institutions 31.91%
Non-Institutions 20.76%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Brigade Enterprises Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Brigade Enterprises Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Brigade Enterprises Ltd.'s performance infers:

Brigade Enterprises Ltd. earnings have grown by 27.3%, whereas share price has appreciated 11.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Brigade Enterprises Ltd. share prices over the last 10 years. Here is what we found out:

Brigade Enterprises Ltd. share price has appreciated 6.7% annually over the past ten years.

Brigade Enterprises Limited (BEL) was originally set up as a partnership firm between M R Jaishankar and Gita Shankar in 1990. BEL was converted into a private company in 1995 and a public company in July 2007. It develops residential, commercial and retail properties primarily in Bangalore and Mysore, and has also developed and is managing around 115 serviced apartments under the brand, Brigade Homestead.

Since 1990 BEL has completed and delivered around 67 projects aggregating about 6.7

Brigade Enterprises Limited (BEL) was originally set up as a partnership firm between M R Jaishankar and Gita Shankar in 1990. BEL was converted into a private company in 1995 and a public company in July 2007. It develops residential, commercial and retail properties primarily in Bangalore and Mysore, and has also developed and is managing around 115 serviced apartments under the brand, Brigade Homestead.

Since 1990 BEL has completed and delivered around 67 projects aggregating about 6.7 million square feet (sq ft) of space comprising residential (71% of the total developed area), commercial (IT parks/office buildings constituting 26% of the total developed area), and hospitality ventures (3%).

Apart from Brigade Investments, other firms—with different ownership structure/share holding patterns—were set up to handle different projects. New firms and subsidiaries included Brigade Investments & Projects Pvt. Ltd, Brigade Developers Pvt. Ltd, Brigade Constructions Pvt. Ltd and Brigade Enterprise Pvt. Ltd.

The partnership company Brigade Investments was dissolved in 1997. Operations were consolidated by merging all group companies through a High Court order into one flagship company, Brigade Enterprises Pvt. Ltd, in 2004. Brigade Hospitality Services Ltd - a 100% subsidiary company to focus efforts on the hospitality business—was set up in 2005. And Brigade facilitated the promotion of associated companies:

  • Tandem Allied Services Pvt. Ltd (2003) which is into facility management, home loans and insurance services
  • AEC Infotech Pvt. Ltd (2000) which is into construction management software and project management services

What began as a 5-member team has become a 1000+ Group. Brigade has an established brand name and reputation for consistently developing high-quality properties that are unique, reliable and convenient for our customers.

The status of the Company was changed to a public limited company by a special resolution of the members passed at an annual general meeting held on June 20 2007.The freshcertificate of incorporation consequent on change of name was granted to our Company on July 20 2007 by the Registrar of Companies Karnataka.

Besides Bangalore, BEL has taken up a few projects in Mysore and recently initiated some development activities in other parts of south India including Mangalore, Hyderabad, Chennai.

BEL came up with a public issue in December 2007 to fund the Rs 47.97-crore acquisition of 41.85 acres of land in Bangalore and Kottayam, the Rs 512.04-crore construction and development cost of ongoing and forthcoming projects, and gemeral corporate expenses.

BEL, Brigade Group’s flagship company, is a successful public limited company that has completed 67 residential, commercial, retail and hospitality projects, covering over 6.74 million sft of developable area. Many more projects are in different stages of conceptualisation and creation, in different cities in South India. These include luxury apartments, integrated enclaves, state-of-the-art software and retail facilities, serviced residences, resorts, clubs, schools, 5-star hotels, a convention centre, hospital and an SEZ.

The company is headquartered in Bangalore, with branch offices in several cities in South India and in Dubai. It has a uniquely diverse multi-domain portfolio that covers property development, property management services, hospitality and education. Our projects extend across several major cities in South India: Chennai, Chikmagalur, Hyderabad, Kochi, Mangalore and Mysore.

Completed projects of the company:

  • Brigade Lakeview (BTM Layout)
  • Brigade Odyssey (Convent Road)
  • Brigade Gateway (Malleswaram-Rajajinagar)
  • Brigade Metropolis (Mahadevapura, Whitefield Road)
  • Brigade PalmSprings (J.P. Nagar)
  • Brigade Courtyard (HMT Main Road)
  • Summit @ Brigade Metropolis (Mahadevapura, Whitefield Road)
  • Brigade TechPark (Whitefield, Next to ITPL)

Milestones

  • 1990- Brigade Enterprises was formed as a partnership firm
  • January 1992 - Completion of construction of Brigade Gardens a centrally air-conditioned shoppingcomplex in Bangalore
  • April 1994 - Completion and handover of our firstluxury apartments project outside Bangalore Brigade Residency Mysore.
  • November 1995 - Conversion of the partnership firm Brigade Enterprises' into a private limited company Brigade Enterprise Private Limited'under chapter IX of the Companies Act
  • December 1995- The project `Brigade Regency' in Bangalorewas rated by CRISIL and has received `PA2'rating.
  • December 1996 - TheCompany obtains the ISO 9001: 1994 certification from the London based Certifying AgencyBureau Veritas Quality International.
  • June 2000 Launch of `Homestead I' range of luxuryservice apartments in Bangalore
  • December 2001- Completion and handover of KomarlaBrigade Residency an eco friendly building
  • August 2002 - Merger of Brigade Developers PrivateLimited and Brigade Investments and Projects PrivateLimited into our Company
  • February 2003 - The Company is re-certified for ISO 9001:2000.
  • July 2003 - The Project Brigade Millenium 1 - Phase I `Mayflower' and `Cassia' Blocks' have been awarded a credit rating of `RT2+' by ICRA
  • Year Key Events Milestones and Achievements
  • October 2005- Merger of Brigade Constructions PrivateLimited with the Company
  • December 2005 - TheCompany is re-certified for ISO 9001:2000
  • June 2006 - Completion of Brigade Millennium an integrated lifestyle enclave in Bangalore.
  • July 2007- Change of status from private to public
  • 2010 - Brigade Enterprises has entered into a Joint Development Agreement for 16.50 acres of land for development of 1.80 million square feet in Whitefield, Bangalore.
  • 2011 - The Company has been awarded "Developer of the Year - Commercial" by Realty Plus at the Realty Plus Excellence Awards
    Brigade Metropolis wins Best Residential Property in South India
    Brigade launches High Quality Value Homes in Bangalore - Brigade Meadows on Kanakapura Road.
    Brigade Enterprises launches 35 storeys villa style luxury apartments
  • 2013 - Brigade Enterprises received the Platinum Award of excellence at CWAB

Awards/Achievements

Brigade has been awarded the following certifications:

  • ISO 9001, 1996 -First property developer in South India and the third in the country to receive the certification.
  • CRISIL Rating PA2, 1995 - The first property developer to receive this rating. Awarded to Brigade Regency project.
  • ISO 9001-2000 Quality Assurance Certification, by Bureau Veritas Quality International (BVQI), 2000- One of the first property developers in South India to receive the ISO 9001-2000 Quality Assurance Certification—for Quality Assurance in Design, Development, Construction and Marketing of Brigade's residential, commercial, software and industrial buildings.
  • ISO 14001:2004 (Environmental Management Systems), 2008
  • OHSAS 18001:1999 (Occupational Health and Safety Assessment Series), 2008
  • RT2+ Rating by ICRA-NAREDCO (Investment Credit Rating Agency and National Real Estate Development Council), 2003 - The highest rating ever to be awarded to a project of a private property developer in India. (Awarded for Brigade Millennium
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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