Buy Aditya Birla Real Estate Ltd For Target Rs.1,880 by Choice Institutional Equities Ltd
Pre-sales subdued due to absence of launches
Pre-sales decreased to INR 3,290 Mn due to the absence of new launches. This level of pre-sales was attributed to sustenance sales, with Pune contributing 36%, led by Birla Punya Phase 2 and Birla Evam. Bengaluru saw 91% of Birla Trimaya Phase 4 inventory sold within two quarters, while Birla Navya Phase 6 contributed INR 420 Mn to NCR pre-sales, which was around 10% of this quarter's total sales
Sustainable Growth with Strong Pre-sales & Launch Pipeline
ABREL has materially strengthened its development pipeline to over INR 739 Bn GDV (34.7 msf), spanning INR 318 Bn (20.0 msf) of ongoing and INR 421 Bn (14.7 msf) of upcoming projects. The company has a well-diversified presence across high-growth markets, led by MMR (~61%), followed by NCR (~19%), then Bengaluru (~12%) and Pune (~8%). ABREL is also scaling up its Grade-A commercial portfolio, which is anchored by operational assets: Birla Centurion (0.32 msf) and Birla Aurora (0.26 msf), alongside ~2 msf of upcoming commercial tower
Positioning in Premium Real Estate Segment with Brand Moat
ABREL benefits from Aditya Birla Group’s strong brand equity and governance standards, thus reinforcing customer trust and premium positioning
Strategic Capital Deployment and Scalable Asset-light Model
The sale of Century Pulp & Paper to ITC for INR 34.98 Bn was completed on 1 August 2026, marking a key balance-sheet inflection, proceeds of which have been earmarked for material deleveraging and growth.
Valuation and View
We maintain our ‘BUY’ recommendation on ABREL and target price of INR 1,880/sh, which is an upside of 35.0%, employing a SOTP valuation framework.
Key Risks
A possible broad-based slowdown in the domestic economy and regulatory procedures. Additionally, reliance on JDA structure risks partner alignment.
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SEBI Registration no.: INZ 000160131
