Scaling core South; upside in rentals starting from FY26
Brigade Enterprises (BRGD) posted a 30% CAGR in presales over FY21-25 and is expected to deliver 19% growth during FY25-28, guided by its strong launch pipeline and a scale-up in Hyderabad and Chennai. Collections are expected to increase to INR123b by FY28, posting a 32% CAGR over FY25-28, which should translate into a cumulative operating cash flow of INR151b over the same period. Additionally, the commissioning of rental assets across geographies is expected to drive a 7% CAGR in rental income over FY25-28. The hospitality portfolio is also expected to grow to 3,300 keys by FY30. We believe BRGD offers strong growth visibility for the coming years, and we reiterate our BUY rating with a revised TP of INR1,338/share, which implies a 52% upside.
