Nomura initiates coverage on Aditya Birla Real Estate, predicts 30% upside on strong growth outlook
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Backed by long-term strong growth visibility, the shares of Aditya Birla Real Estate (ABREL) may go up 30% predicted global brokerage firm Nomura while initiating coverage on the stock with a ‘buy’ rating and a target price of Rs 3,700. 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 manageme...