Brigade Enterprises Research Report By Motilal Oswal

Brigade Enterprises is set to leap into the next orbit, with significant scale-up across business segments. We expect revenue to double and PAT to treble over the next three years. Besides bright growth prospects, we believe BRGD has all the winning traits – enviable track record, product diversification, superior product quality, and good governance.FCFE of INR9.5b-10b over FY15-18 would be strong enough to drive BRGD’s capex and future acquisitions without hurting balance sheet strength. Its JV with GIC gives it added financial muscle. At 7x FY17E EPS and 1x FY17E BV, BRGD trades at a steep discount to peers with similar RoE outlook. Our SOTP-based target of INR232 implies ~50% upside. Buy.

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