Aditya Birla Real Estate: Emkay Sees 40% Upside Potential
Aditya Birla Real Estate Ltd. shares gained 7% after securing a significant investment from IFC. Emkay Global has initiated coverage with a 'Buy' rating and a price target of ₹3,300, indicating a 40% upside potential.
Aditya Birla Real EstateIfcEmkay GlobalReal EstateStock MarketReal Estate NewsJun 09, 2025
Birla Estates, a wholly-owned subsidiary of Aditya Birla Real Estate, will retain a 56% stake in the respective Special Purpose Vehicles (SPVs), with the remaining interest held by IFC. This strategic partnership is expected to bolster the company's growth trajectory and financial stability.
Meanwhile, brokerage firm Emkay Global has initiated coverage on Aditya Birla Real Estate with a 'Buy' rating and a price target of ₹3,300 per share, suggesting a potential upside of 40% from the stock’s last closing price. The positive outlook is driven by the company's robust booking Compound Annual Growth Rate (CAGR) of over 75% during FY20-25. Aditya Birla Real Estate is poised to surpass the ₹10,000 crore mark in the next two years.
With a strong launch pipeline of over ₹45,000 crore, incremental business development (BD), sustained demand momentum, and the brand strength of Birla Estates, Emkay Global expects pre-sales to grow at a 25% CAGR over FY25–27E, reaching ₹12,600 crore. Additionally, collections from the real estate business are estimated to grow at a 32% CAGR over the same period.
The sale of the paper business is expected to generate surplus cash flows, aiding in the reduction of net debt to ₹2,000 crore by FY27E, despite ongoing investments in new projects. This will ensure a strong balance sheet, with net debt trending lower even as the residential segment grows rapidly within a short span.
Emkay Global sees further scope for upward re-rating driven by sustained project additions and more asset-light platform deals such as the recent partnership with Mitsubishi over the medium term. Aditya Birla Real Estate shares ended 4.67% higher on Monday at ₹2,469.50. Despite today's gain, the stock is down 2% so far in 2025.
Frequently Asked Questions
What is the recent investment in Aditya Birla Real Estate?
Aditya Birla Real Estate's wholly-owned subsidiary, Birla Estates, secured an investment of ₹420 crore from the International Finance Corporation (IFC).
What is the price target for Aditya Birla Real Estate according to Emkay Global?
Emkay Global has initiated coverage on Aditya Birla Real Estate with a 'Buy' rating and a price target of ₹3,300 per share, indicating a potential upside of 40%.
What is the expected growth in pre-sales for Aditya Birla Real Estate?
Emkay Global expects pre-sales to grow at a 25% CAGR over FY25–27E, reaching ₹12,600 crore.
How will the sale of the paper business impact Aditya Birla Real Estate's financials?
The sale of the paper business is expected to generate surplus cash flows, aiding in the reduction of net debt to ₹2,000 crore by FY27E.
What is the current stock performance of Aditya Birla Real Estate?
Aditya Birla Real Estate shares ended 4.67% higher on Monday at ₹2,469.50. Despite today's gain, the stock is down 2% so far in 2025.
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