Brokerage firm Anand Rathi gives buy call on Raymond Realty with target price of 879 rupees

Raymond Realty shares could climb nearly 30 percent more from current levels according to a fresh buy rating from brokerage firm Anand Rathi Share and Stock Brokers. The stock closed 1.31 percent higher at 678.10 rupees on the BSE on Wednesday, 14 October, recovering from a two-day fall. Over the last six months, the realty stock has jumped 56 percent while the benchmark Sensex fell 5 percent. Year-to-date, the stock has gained 30 percent while the Sensex dropped nearly 15 percent. The stock reached a 52-week high of 741.90 rupees on 25 September after touching a 52-week low of 350 rupees on 16 March.

Financial Results

For the July-September quarter of financial year 2026-27, pre-sales rose 98 percent year-on-year to 902 crore rupees while collections grew 67 percent to 682 crore rupees. During the first half of the financial year, pre-sales jumped 111 percent to 1,602 crore rupees and collections climbed 57 percent to 1,233 crore rupees. The company reported no new project launches in the September quarter, meaning growth came entirely from sales speed and price gains in the existing 'Address by GS' portfolio. Gross borrowings increased by 125 crore rupees during the quarter, taking total debt to 1,220 crore rupees as of 30 September 2026. Backed by 306 crore rupees in liquidity, net debt stood at 914 crore rupees, keeping the net debt-to-equity ratio safely below the board limit of 1 time. For the full financial year 2027, the company expects nearly 20 percent growth in pre-sales, an ROCE of nearly 20 percent, an EBITDA margin between 17 and 19 percent, and a PAT margin between 9 and 10 percent.

Brokerage Outlook

Anand Rathi set a target price of 879 rupees based on an NAV methodology, backed by the development portfolio and future joint development agreement potential. The brokerage noted that Raymond Realty is turning into an asset-light Mumbai Metropolitan Region platform with roughly 52,000 crore rupees of development potential across owned land in Thane and eight joint development agreements. Joint development agreement bookings rose from 22 percent in financial year 2025 to 54 percent in financial year 2026 and 64 percent in the first quarter of financial year 2027, beating the company target a year early. The brokerage expects bookings and collections to grow at a compound annual growth rate of nearly 24 percent and 46 percent respectively between financial year 2026 and 2029. The company also plans to accelerate its growth over the next two quarters with a strong pipeline of Mumbai Metropolitan Region launches worth over 4,100 crore rupees in gross development value.

Context

Real estate brokerages frequently issue target prices and buy ratings by evaluating a developer's land bank, sales momentum, and ongoing project execution capability. Joint development agreements allow property developers to expand their footprint across major cities without heavy upfront capital spending on land acquisition.