Check Before You Invest : Aditya Birla Real Estate Ltd

Snapshot

Q.1 Which industry/sub-sector does Aditya Birla Real Estate Ltd belong to?

Aditya Birla Real Estate Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.

Q.2 Is Aditya Birla Real Estate Ltd a good quality company?

Aditya Birla Real Estate Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Aditya Birla Real Estate Ltd undervalued or overvalued?

Aditya Birla Real Estate Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Aditya Birla Real Estate Ltd a good buy now?

Aditya Birla Real Estate Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd revenue growth is -30.7% for FY-2025, which is above its 5-year CAGR of -37.63%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Return on capital employed is 2.01% for FY-2025, which is below its 5-year historical median of 7.5%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Return on Asset is -0.15%, which is below its 5-year historical median of 2.78%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Return on equity is -0.35% for FY-2025, which is below its 5-year historical median of 5.18%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Cash conversion cycle is 2466 days, above its 5-year historical median of 80 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.03	0.42
ROE	-0.35	5.18
ROCE	2.01	7.5
Cash Conversion Cycle	2466 days	80 days

Q.6 Gross Profit margin of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Gross profit margin which is the profit after deduction of direct costs, is 65.6% for FY-2025, which is above its 5-year median of 17%, indicating increasing margins.

Q.7 Operating Profit Margin of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 55% for FY-2025, which is above its 5-year median of 17.91% indicating increasing margins.

Q.8 Net Profit Margin of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Net Profit Margin is -4.66% for FY-2025, is below with its 5-year median of 4.84%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	65.6	17
Operating Profit Margin	55	17.91
Net Profit Margin	-4.66	4.84

Q.9 Debt to Equity ratio of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Debt-to-Equity ratio is 0.88, which is above with the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Aditya Birla Real Estate Ltd?

Aditya Birla Real Estate Ltd Debt to cash flow from operations is -5.42, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aditya Birla Real Estate Ltd?

Promoters hold 50.21% of the Aditya Birla Real Estate Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aditya Birla Real Estate Ltd vs industry peers?

Aditya Birla Real Estate Ltd revenue CAGR is -37.63%, compared to the industry median CAGR of 4.37%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-30.7	4.4
Gross Profit Growth	-41.9	NAN
Operating Profit Growth	-46.6	NAN
Net Profit Growth	-106.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.03	0.14
ROE	-0.35	1.52
ROCE	2.01	4.04
Cash Conversion Cycle (days)	2466.07	625

Valuation & price assessment

Q.1 Stock return of Aditya Birla Real Estate Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	9.3%	25.1%	29.2%	-21.7%

Q.3 Valuation ratios of Aditya Birla Real Estate Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	57.58	34.05
Price to Book	3.7	2.90	1.53
Price to Sales	55.21	3.05	5.34
EV to EBITDA	50.72	22.49	14.40

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