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500040: Faster Revenue Outlook Will Support Strong Long Term Earnings Potential

Update shared on 19 Dec 2025

Fair value Decreased 5.36%
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AnalystConsensusTarget's Fair Value
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1Y
-32.3%
7D
1.5%

Analysts have modestly reduced their price target on Aditya Birla Real Estate to ₹2,697 from ₹2,850, citing expectations of significantly faster revenue growth, tempered by lower profit margins and a compressed future price to earnings multiple.

What's in the News

  • Board meeting scheduled for October 28, 2025, to review unaudited standalone and consolidated financial results for the quarter ended September 30, 2025 (company filing)
  • Proposal under consideration to amend debenture trust deeds to add early redemption clauses for three series of unsecured non convertible debentures (ISINs: INEOSSA08029, INEOSSA08045, INEOSSA08037) (company filing)
  • Board to evaluate raising funds via issuance of non convertible debentures in one or more tranches on a private placement basis, within existing shareholder approved borrowing limits and subject to regulatory approvals (company filing)

Valuation Changes

  • Fair Value: Reduced modestly to approximately ₹2,697 from about ₹2,850, reflecting a slightly lower fundamental valuation.
  • Discount Rate: Increased slightly to around 16.66 percent from about 16.34 percent, implying a marginally higher required return and risk perception.
  • Revenue Growth: Raised significantly to roughly 95.65 percent from about 42.46 percent, indicating much stronger growth expectations.
  • Net Profit Margin: Reduced meaningfully to around 19.98 percent from about 26.78 percent, signaling expectations of weaker profitability per unit of revenue.
  • Future P/E: Lowered sharply to roughly 35.27x from about 60.77x, suggesting a compressed valuation multiple on projected earnings.

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Disclaimer

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