Anand Rathi gives Buy rating to Aditya Birla Real Estate
The brokerage set a target price of ₹1,345 per share despite the stock losing 38 per cent of its value in 2026.
Domestic brokerage firm Anand Rathi has initiated coverage on Aditya Birla Real Estate (ABREL) with a 'Buy' rating, according to reports by Mint and Moneycontrol. The firm has set a target price of ₹1,345 per share, which suggests an upside potential of 30 to 34 per cent from the stock's recent closing price of approximately ₹1,036.
The brokerage noted that while the stock has faced selling pressure and dropped 38 per cent in 2026, the company is moving towards becoming a multi-city, capital-efficient platform with commercial assets. This shift follows a period of significant growth in pre-sales driven by business development between FY23 and FY25.
Anand Rathi stated that the deferment of the Niyaara Tower C launch to FY28 might impact pre-sales in FY27. However, the firm believes this delay adds value, as redesigning and combining adjacent land parcels is expected to increase the overall Worli gross development value (GDV) by approximately ₹19 billion.
The company has a planned launch pipeline of about ₹483 billion, with the Worli residential portfolio making up roughly ₹243 billion of that total. With ₹60 billion in business development additions year-to-date and a further ₹600 billion opportunity pipeline, the brokerage expects pre-sales to gain momentum again from FY28.
The brokerage expects this recovery to support the management's target of ₹150 billion by FY29. Financial flexibility is expected to be maintained through improving collections, divestment proceeds, and selective joint development or joint venture partnerships.