Stock to Buy: Realty stock to buy now for 50% returns by Motilal Oswal

Synopsis: Motilal Oswal is still upbeat about Brigade Enterprises. They point to strong presales, plenty of new launches coming up, better collections, and more rental income that could drive a significant 53% upside.

The shares of this leading real estate player are in focus after Motilal Oswal cited that the company can achieve a notable upside, pointing out that the company has robust growth potential in South India, followed by a robust residential income trajectory and more. In this article, we will dive more into the details behind this uptick.

With a market capitalization of Rs 21,369 crore, the shares of Brigade Enterprises Ltd. are currently trading at Rs 872.50 per share, down 0.6 percent from its previous day’s closing price of Rs 877.70 per share. Over the past five years, the stock has delivered a robust return of 250 percent, outperforming NIFTY 50’s return of 85 percent.

Analyst Comments

Leading domestic brokerage house, Motilal Oswal, has initiated a Buy rating on Brigade Enterprises and has assigned a target price of Rs 1,338 per share, signalling an upside potential of 53 percent from its current market price.

Motilal Oswal cited that Brigade Enterprises is on a solid growth path, mostly because of its booming residential business in South India. The brokerage points out that Brigade delivered an impressive 30 percent compound annual growth in presales from FY21 to FY25. Looking ahead, they expect this pace to stay strong, with about 19 percent annual growth through FY28 backed by a solid pipeline of new projects and expanding reach in big markets like Bengaluru, Hyderabad, and Chennai.

It added that more than half of Brigade’s presales in FY25 came from brand-new projects. In the first half of FY26, Brigade rolled out multiple projects across Bengaluru, Chennai, and Gujarat, and the sales numbers look healthy. The company has nearly 11 million square feet of new residential projects in the works, giving a pretty clear line of sight on steady sales over the next few years.

Motilal Oswal also notes a big jump in collections and cash flows. They expect collections to climb to about Rs 12,300 crore by FY28 (32 percent CAGR), which should add up to roughly Rs 15,100 crore in operating cash over FY25 to FY28. This kind of cash generation helps keep the balance sheet strong and supports future expansion—without piling on more debt.

It also added that Brigade’s commercial and rental business is set to play a bigger role, with rental income likely to grow at 7 percent a year through FY28 as new office spaces open up in different cities. The hospitality side isn’t getting left behind either. The hotel portfolio could reach around 3,300 keys by FY30, which adds more stability and variety to Brigade’s earnings.

In short, Motilal Oswal thinks Brigade Enterprises has strong growth potential across residential, commercial, and hospitality segments. With a careful approach to debt and capital, the company looks well-positioned.

Financial and other highlights

Brigade Enterprises Ltd has reported an operating revenue of Rs 1,383 crore in Q2 FY26, representing a 29 percent growth compared to Rs 1,072 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 8 percent from Rs 1,281 crore.

Regarding its profitability, it reported a net profit of Rs 170 crore in Q2 FY26, a growth of 48 percent as compared to Rs 115 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 8 percent from Rs 158 crore. 

Brigade Enterprises Ltd is a diversified real estate company that was established in 1986. The company manages its estates in a variety of ways, including developments, leasing and other services. Its properties range from residential, commercial, retail and hospitality projects which include integrated townships, office developments, malls and luxury hotels. Headquartered in Bengaluru, the company has been able to consolidate its presence in the South Indian markets of Chennai, Hyderabad, Mysuru and Kochi.

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