realty

Aditya Birla Real Estate

ABREL · Nifty 50

1,299.5

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionrealty sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score65/100 (ADEQUATE). 1 positive flags, 7 concerns.
Historical Context61 similar technical setups. Average outcome: -12.2% decline. 0% positive.

Fundamental

65/100

ADEQUATE

Trust

95/100

Verification

Coverage

33/100

LIMITED

Quick Take

Aditya Birla Real Estate scores 65/100 on fundamentals (adequate). Aditya Birla Real Estate: BROAD EXPANSION regime.

Fundamental Score: 65/100 · ADEQUATE · 3 signals detected

DuPont Analysis

ROE -5.9% broken into three drivers. Each shows how efficiently the company generates returns.

ROE-5.9%=
-31.3%Net Margin
×
0.0xTurnover
×
5.5xLeverage

ROE of -5.9% is modest leverage-driven and stable. Net margin of -31.3% × asset turnover of 0.03x × leverage of 5.5x. High leverage amplifies returns but increases risk.

What This Means

Net margin of -31.3% means the company keeps ₹-31.3 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.03x means the company generates ₹0.03 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 5.5x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

43.9%

Operating

-71.0%

Net

-31.3%

improving

Gross margin 43.9% → operating margin -71.0% → net margin -31.3%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -3.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

STRETCHED

Interest covered only -8.5x — stretched. Rising rates could pressure profitability. Debt/EBITDA at -13.2x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 76.5% — strong cash generation. Business is self-funding.

Peer Comparison

Aditya Birla Real Estate is compared against 9 peers in the realty sector.

Key Watchpoints

🟢

Breaks above ₹1364 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1235 (-5%)

Further downside risk

🟢

Realty sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
➡️ Leverage Slowly Rising: Debt growing faster (12.8%) than equity (-3.6%)
⚠️ Low Earnings Quality: Cash flow only -3.4x earnings — weak cash conversion

Risk Flags

🔴 1 Critical⚠️ 6 Warning1 Positive8 total flags
🔴Cash covers only 11% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹25K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Asset sale gains are 47% of net income
Earnings Quality

Company selling assets to boost profit. Non-recurring. Core earnings are lower.

⚠️Non-core revenue is 42% of total
Earnings Quality

Significant income from non-operating sources. Core business may be smaller than it appears.

⚠️Working capital changes are 136% of operating cash flow
Cash Flow

Working capital is providing significant cash. Stretching payables — temporary boost.

⚠️Receivables increasing — 17.6% of revenue
Cash Flow

Collection cycle changing. Customers taking longer to pay — monitor DSO.

⚠️Price/Sales: 35.8x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

High promoter holding: 55%
Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 6 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/B Ratio
3.6HIGH
Market Cap
₹1325164.9L CrHIGH
From 52W High
51% of high
Sector Peers
9
Aditya Birla Real Estate Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight