Nomura believes that ABREL has all the qualities to rank among top 5 real estate players in India.
The brokerage has cited 3 primary reasons for their optimism on the stock.
First, the long-term visibility. The development potential of its 40-acre prime Worli land parcel alone could drive cumulative pre-sales of Rs 40,000 crore at +40% EBITDA margins over its lifetime on a conservative basis.
Secondly, large-scale , disciplined and quality business development (BD) in Mumbai, the National Capital Region (NCR), Bangalore and Pune provides visibility on future pre-sales and margins.
Lastly, 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.βWe peg the cumulative GDV of its project pipeline at Rs 90,000 crore (vs to date pre-sales at Rs 9,000 crore),β said Nomura in its note.Also read: Cochin Shipyard shares fall 5% as two-day OFS begins
Shares of Aditya Birla Real Estate have given multibagger returns of 144.7% and 126.9% in the last one year and the current year so far, respectively, while increasing by 63.8% in the last 6 months, according to the BSE analytics.
ABREL shares were trading 1.6% higher at Rs 2,904.25 on the BSE around 12 noon on Wednesday.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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