Motilal Oswal Recommendations Buy Aditya Birla Real Estate with a Target Price of Rs 1920

Aditya Birla Real Estate Sees 24% Dip in 4Q Presales, But Stays on Track

Aditya Birla Real Estate's (ABREL) fourth quarter (4Q) presales witnessed a decline of 24% year-over-year (YoY) to INR42.9 billion, aligning with the research firm Motilal Oswal's estimate. The company's recent launches have provided a significant boost to its presales momentum.

In the 4Q, the launch of Birla Arika P 2 in Sector 31, Gurugram, generated ~INR16 billion in bookings, with ~97% of the project sold within a month. Additionally, the launch of Birla Taranya in Thane recorded ~INR9.5 billion in bookings, contributing to the traction in the Mumbai Metropolitan Region (MMR). Furthermore, the launch of six more projects/phases during fiscal year 2026 (FY26) has supported the company's presales momentum across key projects, including Birla Pravaah in Sector 71, Gurugram, Birla Trimaya P-4 in Bengaluru, Birla Evara in Bengaluru, Birla Evam in Pune, and Birla Punya in Pune.

The company's overall FY26 presales stood at INR81.4 billion, remaining relatively flat YoY, in line with expectations. This stability in presales is a positive indicator for the company's future prospects.

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Positive Outlook

The company's focus on expanding its annuity portfolio is a significant positive development, as it is expected to provide cash flow stability post-FY30. Motilal Oswal has maintained a BUY rating on the stock with a target price (TP) of INR1,920, implying a 21% upside potential.

Note: YoY change is calculated based on the given data.

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