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    FUNDAMENTAL
                                                    ST CK

    Federal Bank Ltd.                                               developments and affordable homes. As a part
                                                                    of diversification strategy, company aims to
    Accumulate                              Target Price Rs 350     increase revenues from the leasing business.
     Value Parameters
                                                           532929   Investment Rationale
     BSE Code                                         BRIGADE
     NSE Symbol                                                     Strong portfolio of ongoing and planned
     CMP (As on 04th Dec, 2017)                             Rs 302  development projects located in attractive
     Face Value                                              Rs 10  south India property markets with Robust
     52 Week High/Low                                Rs 322/145     Bangalore market fundamentals and preference
     Market Cap (Rs cr)                                       4068  for organized players post RERA should aid
     EPS (TTM)                                               13.71  BEL’s well-balanced portfolio and currently in
     PE Ratio (x)                                            22.97  the process of developing 30 million square feet
                                                                    across seven cities over the next five years. As
    Shareholding Pattern % (Sep’ 17)                                per management statement in Annual report
      Promoters Dlls FIIs Other                                     of FY17 BEL will be launching 11.53 mn. sq.
                                                                    ft. during the FY17-18. This will comprise of
    Others                       Promoters                          5.02 mn. sq. ft. of real estate space, 5.76 mn. sq.
     26%                           47%                              ft. of Commercial Space and 0.13 mn. sq. ft. of
                                                                    Hospitality space. BEL entered into an MOU
    DII                                                             with Intercontinental Hotels to initially set up 10
    14%                                                             Holiday Inn Express hotels out of total 20 hotel
                                                                    properties planned across by 2020.
               FI I
             13%                                                    Outlook & Valuation

    Company Overview                                                Brigade, September Quarter sales were up
                                                                    8% YoY to Rs 484 Cr and PAT was up by 38%
    Brigade Enterprises Ltd has a diverse and mature                YoY to Rs 41.62 Cr. Company plans to increase
    portfolio of real estate, lease rental and hospitality          focus on hospitality and leasing business and is
    businesses and successfully expanded footprints                 expected to improve on its sales with diversified
    beyond Bengaluru and Mysuru to other high-growth                portfolio.
    potential cities like Chennai, Hyderabad, Kochi and
    GIFT City, Gujarat. It has an in-house, fully integrated        BEL highlighted the fact that sales for Q2FY18
    property development team comprising engineers and              were slow because of RERA-related compliance.
    architects who oversee the development of properties            Going forward sales are expected to pick up
    from inception to completion. Its land bank strategy            from Q4FY18, as BEL is launching 2.4 mn sq ft
    includes outright purchase of land parcels as well              under both residential and commercial project,
    as entering into joint development its product mix              2mn sq ft of commercial-lease project and
    consist of premium residential apartments, mixed use            building 0.43 mn sq ft of two IBIS Hotels in the
                                                                    second half of FY17-18.
    4 ARIHANT CAPITAL ¡ dECembER 2017
                                                                    Our Conservative SOTP valuation for BEL
                                                                    comes to Rs 350 per share considering projects
                                                                    that have visibility over next year. We have
                                                                    ‘ACCUMULATE’ rating on this stock.

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