Brigade Hotel Ventures IPO Review

Brigade Hotel Ventures is an owner and developer of hotels in key cities in India primarily across South India. They are the second largest owner of chain-affiliated hotels and hotel rooms in South India (comprising the states of Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and the Union territories Lakshadweep, Andaman and Nicobar Islands and Pondicherry) among major private hotel asset owners (i.e., investors owning at least 500 rooms pan India) as of March 31, 2025. 

The company benefit from the experience of the senior management team, who have extensive knowledge in the hospitality and real-estate sector, including in operations, business development and customer relationships. They are guided by the Directors, including Nirupa Shankar, Amar Mysore and Vineet Verma who have several years of experience in the hospitality and real-estate industry, respectively, and have been instrumental in the growth of the business and operations.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 4,706.80 Million, ₹ 4,048.50 Million and ₹ 3,564.10 Million. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,668.70 Million, ₹ 1,446.10 Million and ₹ 1,029.80 Million. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 236.60 Million, ₹ 311.40 Million and ₹ -30.90 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 0.72 and post-issue EPS of ₹ 0.53 for FY24. The pre-issue P/E ratio is 125x, while the post-issue P/E ratio is 169.32x against the Industry P/E ratio is 91x. The company's ROCE for FY24 is 13.62%, ROE for FY24 is 30.111% and RoNW is 30.11%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Brigade Hotel Ventures showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the IBrigade Hotel Ventures Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.