Shares of Aditya Birla Group’s real estate arm, Aditya Birla Real Estate, were ruling higher on the bourses in the week’s last trading session and climbed as much as 6.91 per cent to hit an intraday high of ₹1,378.5 per share on the NSE.
The northward movement in the company’s share price came on the back of its announcement to exercise a call option to redeem non-convertible debentures (NCDs) worth ₹250 crore before maturity. Sentiment was further supported by a bullish call from global brokerage firm Emkay Global, which has reinitiated coverage on the realty player.
Though the counter pared some gains, it continued to see solid demand from buyers. At 02:05 PM on Friday, the stock was trading higher, even as the benchmark Nifty50 was in the green.
Notably, the real estate player informed exchanges that it will redeem 25,000 debentures, each with a face value of ₹1 lakh, along with accrued interest and applicable premium. The early redemption is scheduled for May 4, 2026, and the company has issued a notice to the trustee and debenture holders. It has also fixed May 4 as the record date to determine eligible debenture holders for the payout.
Emkay says Buy for 27% upside
Brokerage firm Emkay Global has reinitiated coverage on Aditya Birla Real Estate with a ‘Buy’ rating. Given the company’s strong cash flow visibility, execution capabilities, and corporate governance, the brokerage believes the stock is likely to trade at a premium to its net asset value (NAV).
The brokerage has set a target price of ₹1,750, based on 6x EV/embedded Ebitda, implying a premium to NAV. The target price suggests an upside potential of around 27 per cent from the current market price.
“ABREL has demonstrated its ability to sell, with cumulative sales bookings of ₹17,800 crore since the launch of its first residential project in Kalyan in Q1FY20. Pre-sales grew from ₹460 crore in FY20 to ₹8,090 crore in FY25 — a robust CAGR of 77 per cent — with 78 per cent of current projects already sold out. ABREL posted pre-sales of ₹3,850 crore in 9MFY26,” said the brokerage.
On the back of strong launches (GDV of ₹6,200 crore) and healthy demand in Q4FY26, Emkay expects the company’s FY26 pre-sales to cross ₹8,400 crore (vs ₹8,090 crore in FY25). However, business development has remained muted, with only one deal (GDV of ₹1,700 crore) announced compared with guidance of ₹15,000 crore for FY26.
The brokerage expects business development to pick up going forward, with several large projects across markets in the pipeline. It has projected FY26/FY27/FY28 pre-sales at ₹8,400 crore/₹8,400 crore/₹11,800 crore, respectively.
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