Buy Aditya Birla Real Estate; target of Rs 2275: Motilal Oswal

Buy

Motilal Oswal's research report on Aditya Birla Real Estate

ABREL commenced operations in 2016 under the ‘Birla Estates’ division of its listed entity, Century Textiles. Following the divestment of legacy businesses such as textiles and pulp & paper, the company was rebranded as ‘Aditya Birla Real Estate Limited’ in Oct’24, emerging as a focused real estate platform. From its inception, ABREL has positioned itself in the premium, luxury, and ultra-luxury housing segments, with selective forays into the commercial and retailspaces. Its business model is built on redevelopment opportunities, joint development agreements, and asset-light partnerships, complemented by selective outright acquisitions. This capital-efficient approach has enabled the company to scale rapidly, delivering ~INR 81b in presales in FY25, reflecting a strong 90% CAGR since FY21.

Outlook

We initiate coverage on ABREL with a BUY rating and a TP of INR 2,275, implying a 33% upside potential.

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Aditya Birla Real Estate - 19122025 - moti