Aditya Birla Real Estate positions among Top 5 Real Estate players in India

A Japanese brokerage Nomura initiates coverage on Aditya Birla Real-Estate which is formerly known as Century Textile and Industries believes that the firm has all the ingredients in place to rank amongst the top-5 real-estate players in India.

The brokerage has issue a ‘buy’ rating on the firm, with a target of price of Rs. 3,700 per share which indicates an upside potential of 30%.

Among the major reasons for bullishness, Nomura says that the firm’s long-term visibility is very positive in case of the development of potential of its ~40-acre in prime Worli land parcel. This alone could drive cumulatively on pre-sales of Rs. 40,000 crore at +40% EBITDA margins over its lifetime on a conservative basis.

Responded by Nomura,’’ the large scale has discipline the quality business development (BD) in places like Mumbai, National Capital Region (NCR), Bangalore and Pune which provides clear visibility on future pre-sales and margins’’.

Aditya Birla Real-Estate quotes that Rs. 2903.2 per share which is higher by 1.5% compared to the previous session closing price.

According to brokerage,’’ As part of the Aditya Birla Group, the company benefits from strong brand equity, and has an experienced senior management team with previous professional tenure at key competitors’’.

Nomura also attaches the gross-development value of Aditya Birla Real Estate’s project’s pipeline at Rs. 90,000 crore. In comparison to this; the pre-sales to date have been around Rs. 9 crore. As a result, the firm has the ingredients to be amongst the top real estate players in terms of pre-sales.

Century Textiles and Industries, previously rebranded to Aditya Birla Real Estate .The firm has previously deals in the textile paper and pulp segments which made its foray into the realty segment.

According to the company’s website the company is a premium player in the residential and commercial real estate segment with a fast-expanding presence in key markets of MMR, NCR, Bengaluru, and Pune.