Brokerage Anand Rathi gives Buy rating to Aditya Birla Real Estate with target of ₹1,345

Domestic brokerage firm Anand Rathi has initiated coverage on Aditya Birla Real Estate with a Buy rating and a target price of ₹1,345 per share, pointing to an upside potential of 30% from the stock's latest closing price. The stock has faced heavy selling pressure and lost 38% of its value, trading at around ₹1,036 apiece. Despite this drop, the brokerage remains confident about long-term growth as the company shifts from a Worli-led story to a diverse, capital-efficient real estate platform with multi-city projects and commercial assets.

Growth Outlook

Worli residential projects make up ₹243 billion, or 50% of the company's ₹483 billion upcoming launch pipeline, making it a key driver for near-term visibility. A moderation in business development additions and the delay of the Niyaara Tower C launch to FY28 will weigh on FY27 pre-sales. However, the brokerage views the delay as value-accretive because redesigning and joining adjacent land parcels adds ₹19 billion to the overall Worli gross development value. With ₹60 billion of business development additions year-to-date, a ₹600 billion opportunity pipeline, and stronger launches starting from FY28, Anand Rathi expects pre-sales to regain momentum and support management's target of ₹150 billion by FY29.

Context

Brokerage firms routinely issue stock ratings and price targets to help investors gauge a company's potential future performance based on its financial health and project pipeline. Real estate firms rely heavily on project launches, land acquisitions, and pre-sales to drive revenue growth over multi-year cycles.