Brigade Enterpr. (BRIGADE)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• 5-year revenue CAGR of 21.08% demonstrates a strong historical growth track record
• Latest quarter net profit of ₹206 Cr on sales of ₹1,575 Cr and profit growth of 15.61% show operating momentum
• Positive free cash flow of ₹405 Cr and Piotroski F-Score of 7/9 indicate healthy financial operations
• Debt/Equity of 0.83 is manageable for a capital-intensive real estate developer
• Promoter holding of 41.12% provides reasonable promoter alignment

Concerns

• Price of ₹785.05 is far above Graham Number of ₹406.64 and DCF intrinsic value of ₹58.60; margin of safety is deeply negative at -70.68%
• Valuation is rich with P/E of 22.38, P/B of 3.41, PEG of 4.37 and EV/EBITDA of 132.88
• Altman Z-Score of 1.19 points to financial vulnerability for a cyclical business
• Sales growth has cooled to 7.22% from the 5-year CAGR of 21.08%, and dividend yield is negligible at 0.36%

AI Analysis

Brigade is a real estate developer in the residential and commercial space. The five-year revenue CAGR of 21.08% shows past execution, but the latest sales growth of only 7.22% reminds me that momentum is cooling. Profit growth of 15.61% is respectable, and the latest quarter's net profit of ₹206 Cr on sales of ₹1,575 Cr suggests a decent operating margin. Yet Graham would ask: are you buying a good business at a fair price? Here, the FairStock Score of 50/100 says mixed, and I agree. The financial health is not terrible: debt/equity of 0.83 is manageable for a developer, free cash flow is ₹405 Cr, and the Piotroski score of 7/9 is encouraging. ROE of 13.23% and ROCE of 13.34% are acceptable but not exceptional. Promoter holding of 41.12% is a positive, but the dividend yield of 0.36% is negligible. The valuation is the problem. At ₹785.05, the stock trades at 22.38 times earnings and 3.41 times book value. Graham's number is only ₹406.64, giving a deeply negative margin of safety of -70.68%. The DCF intrinsic value of ₹58.60 is far below the market price, and EV/EBITDA of 132.88 leaves no room for error. The Altman Z-score of 1.19 also signals financial vulnerability, which is common in cyclical, capital-hungry real estate. This is a cyclical business. I cannot call it a fast grower when current sales growth is 7.22% and the PEG ratio is 4.37. A good developer, yes; a good investment at this price, no. I would wait for price to approach book value or Graham number before acting.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer