India's Brigade Enterprises posts three-fold surge in Q4 profit on strong real estate demand

(Reuters) - Indian real estate developer Brigade Enterprises reported a nearly three-fold surge in fourth-quarter profit on Tuesday, easily beating analysts' expectations, due to strong real estate demand.

Its consolidated profit attributable to shareholders surged to 2.06 billion rupees ($24.8 million) in the quarter, from 692.5 million rupees last year, which included a pandemic-related impairment loss of 170 million rupees.

Analysts, on average, had estimated the company would post a profit of 970.6 million rupees, as per LSEG data.

Brigade Enterprises' revenue surged two-fold to 17.02 billion rupees, it reported.

KEY CONTEXT

The Indian real estate sector has been seeing growing demand for home ownership in the luxury segment despite higher property prices. Nearly half of Brigade Enterprises' revenue comes from selling residential houses, mainly luxury and premium ones, with commercial and office spaces accounting for the rest of its revenue.

Rival Oberoi Realty also beat profit estimates on strong demand for luxury projects.

PEER COMPARISON

Valuation (next Estimates (next 12 Analysts' sentiment

12 months) months)

RIC PE EV/EBIT Revenue Profit Mean # of Stock to price Div Yield (%)

DA growth (%) growth (%) rating* analysts target**

Brigade Enterprises 54.65 22.73 17.59 55.01 Buy 12 1.18 0.16

DLF 59.39 72.47 19.87 25.26 Hold 15 0.96 0.48

Sobha 51.59 27.80 24.91 296.67 Hold 12 1.11 0.15

Oberoi Realty 28.59 21.23 24.33 14.00 Hold 19 1.26 0.39

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.1658 Indian rupees

(Reporting by Anisha Ajith in Bengaluru; Editing by Savio D'Souza)