Archive · 19 Dec 2025
Motilal Oswal Initiates Coverage on Aditya Birla Real Estate
Motilal Oswal, a big investment company, has started looking at Aditya Birla Real Estate, a company that builds homes.
They think the company's stock could go up by 33% and have set a target price of Rs 2,275.
The company has done really well in selling homes before they are built, and they have a lot of projects planned in big cities.
They also have a smart way of building homes that doesn't need a lot of money upfront.
The company is expected to make a lot more money in the next few years, and Motilal Oswal thinks it's a good time to invest in them.
Motilal Oswal initiates coverage on Aditya Birla Real Estate with a Buy call and a target price of Rs 2,275, implying a 33% upside potential.
Aditya Birla Real Estate delivered pre-sales of Rs 8,100 crore in FY25, with a 90% CAGR in pre-sales between FY21-FY25.
The company has a residential pipeline of Rs 35,100 crore over the next 2-4 years, concentrated in major cities with high demand for premium housing.
ABREL's business model focuses on redevelopment and joint development, reducing the need for heavy upfront land purchases.
Collections have grown at a 52% CAGR since FY21, with expected improvement in collection efficiency from 33% in FY25 to 60% by FY28.
- Who
- Motilal Oswal Financial Services
- What
- Initiated coverage on Aditya Birla Real Estate (ABREL) with a Buy call and a target price of Rs 2,275
- When
- Current and future projections
- Where
- Major cities including MMR, Bengaluru, Pune, and NCR
- Why
- Strong performance and growth potential in the real estate sector
- Brokerage Firm
- Motilal Oswal Financial Services
- Stock
- Aditya Birla Real Estate (ABREL)
- Target Price
- Rs 2,275
- Upside Potential
- 33%
- Pre-sales in FY25
- Rs 8,100 crore
- CAGR in Pre-sales (FY21-FY25)
- 90%
- Expected Bookings CAGR (FY25-FY28)
- 26%
- Residential Pipeline (Next 2-4 Years)
- Rs 35,100 crore
- Collection Efficiency (FY25)
- 33%
- Collection Efficiency (FY28)
- 60%
- Cash Flow Visibility (Near & Medium Term)
- Rs 17,600 crore
- Project Completion Costs
- Rs 9,690 crore
- Expected Surplus
- Rs 7,420 crore
- Expected Revenue (FY28)
- Rs 5,890 crore
- Expected EBITDA (FY28)
- Rs 1,010 crore
- Expected PAT (FY28)
- Rs 980 crore
- Valuation of Residential Project Pipeline
- Rs 18,400 crore
- Valuation of Commercial Assets
- Rs 1,500 crore
- Valuation of Land Bank
- Rs 3,900 crore