Aditya Birla Real Estate Ltd.
ISIN: INE055A01016 • Market Cap: ₹15,590 Cr
The 5-Pillar Quality Audit for Aditya Birla Real Estate Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (-83.2%), Return on Capital Employed (-4.7%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.53 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-25.8%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.2%, backed by 25.9% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (25.9%)
Mutual funds, domestic DIIs, and foreign FIIs hold 25.9%, providing strong governance scrutiny.
Consistent Market Standing (Mid Cap)
Established player in the Realty sector with an overall fundamental quality score of 35/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: -4.7%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 1.53)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: -25.8%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking ABREL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 35/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Realty Sector Peer Comparison
Compare ABREL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Aditya Birla Real Estate Ltd. (ABREL)Current | 35/100 | ₹15,590 Cr | — | -4.7% | 1.53 | — |
| DLF Ltd. (DLF) | 62/100 | ₹1.65 Lakh Cr | 37.14 | 6.1% | 0.00 | View |
| Lodha Developers Ltd. (LODHA) | 82/100 | ₹1.21 Lakh Cr | 29.21 | 18.2% | 0.44 | View |
| Phoenix Mills Ltd. (PHOENIXLTD) | 68/100 | ₹68,498 Cr | 53.51 | 10.3% | 0.45 | View |
| Prestige Estates Projects Ltd. (PRESTIGE) | 64/100 | ₹67,840 Cr | 59.57 | 13.8% | 0.92 | View |
| Godrej Properties Ltd. (GODREJPROP) | 69/100 | ₹60,093 Cr | 37.55 | 12.4% | 0.80 | View |
Frequently Asked Questions: Aditya Birla Real Estate Ltd.
Q:What is the 5-Pillar Fundamental Score for Aditya Birla Real Estate Ltd. (ABREL)?
Aditya Birla Real Estate Ltd. has a RupeeTools Fundamental Score of 35/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (23/100), Financial Health (44/100), Growth (20/100), Valuation (15/100), and Ownership Quality (78/100).
Q:Is ABREL fundamentally strong for long-term investment?
ABREL currently holds a moderate quality rating of 35/100. While it operates in the Realty sector, investors should monitor its debt health before initiating long-term positions.
Q:Does ABREL pass the Coffee Can Investing filter?
No. ABREL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ABREL compare against other Realty peers?
Within India's Realty sector, ABREL trades at a P/E of — and generates an ROCE of -4.7%. Compare its 5-Pillar score of 35/100 against top sector peers like DLF Ltd. (62/100), Lodha Developers Ltd. (82/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.