Archive · 11 Jun 2025
Aditya Birla Real Estate: Emkay Initiates Coverage with a Buy
A brokerage firm, Emkay, thinks Aditya Birla Real Estate is a good investment.
They predict the real estate business will grow a lot and the sale of another part of the company will give them more money to grow.
They expect the company to expand into new areas and that it is a good move.
The company also sold its paper business to another company.
Emkay initiated coverage of Aditya Birla Real Estate with a Buy rating and a target price of Rs 3,300.
Collections from the real estate business are projected to grow 32% annually between FY25-FY27.
Sale of the paper business will generate cash flow and help reduce net debt.
Aditya Birla Real Estate is expanding into new markets, including Mumbai, Delhi, Bengaluru, and Pune.
The company recently sold its paper division to ITC for Rs 3,498 crore.
- Who
- Emkay and Aditya Birla Real Estate.
- What
- Emkay initiated coverage on Aditya Birla Real Estate with a Buy rating and a target price of Rs 3,300.
- When
- Between FY25-FY27 collections are expected to grow, with sale completion in FY26
- Where
- Mumbai, Delhi, Bengaluru, and Pune.
- Why
- Emkay believes there's scope for an upward re-rating in the share price of Aditya Birla Real Estate.
- Target Price
- Rs 3,300
- Collection Growth (FY25-FY27)
- 32% CAGR
- Net Debt Reduction (by FY27)
- Rs 2,000 crore
- Pre-sales Growth
- 25%
- GDV Potential
- Rs 45,000 crore
- Paper Business Sale
- Rs 3,498 crore to ITC