Raymond Realty Listing: Shares Open below discovered price; Brokers still bullish about long -term perspectives – Times of India

Raymond Realty shares mentioned on the BSE on RS 1,005 and on the NSE on RS 1,000 on Tuesday, which marks a weaker debut than the discovered price of RS 1,039.30 on the NSE and RS 1.031.30 on the BSE. According to ET, the offer followed the Demerger of Raymond Ltd’s real estate, which gives shareholders one Raymond Realty share for each Raymond LTD share, so that they were exposed directly to the group’s ownership activities for the first time.Brokers remain bullish despite the lower than expected opening. As reported by ET, Ventura Securities has based a target price of RS 1,383 per share based on FY28 DCF projections, while SBI effects appreciates the shares between RS 897 and RS 1,430, depending on the valuation multiples. SBI has assigned a basic real value of RS 1.148, based on a growth of 10 percent Yoy Ebitda in FY26 and a 13x EV/EBITDA -Meerder.The flagship activities of Raymond Realty are centered on a 100 -hectare land package in Thane, of which 40 hectares with 4 million m² of carpet area under active development, with an estimated income potential of RS 9,000 crore. The remaining 60 hectares will be developed in the coming 6-8 years, which may add RS 16,000 crore of income. Combined, the Than Land Bank has a gross development value (GDV) of RS 25,000 Crore.The company has also been expanded through six joint development agreements (JDAs) in Mumbai in Bandra, Mahim, Sion and Wadala. The JDA portfolio is expected to generate RS 14,000 crore of income, allowing the Raymond Realty model to skip land acquisition costs and to concentrate on implementation, a strategy that holds its balance light. About 40-45 percent of future income is expected to come from JDA projects in the next seven years, rising to 70 percent in the long term.According to PTI news agency, chairman and MD Gautam Singhania emphasized the financial discipline in the midst of heated real estate prices, which stated: “I will only close a deal if it provides financial returns.” CEO Harmohan Sahni strengthened this approach and said that the company will not sign projects unless the profit margins are at least 20 percent. Sahni revealed that only six of the 1,400 evaluated projects were completed.For FY25, Raymond Realty recorded an increase in sales from 45 percent to RS 2,313 Crore and an increase of 37 percent in EBITDA to RS 507 Crore. Ebita -marge, however, fell slightly to 21.9 percent.In Q4FY25, the turnover was RS 766 Crore, EBITDA stood on RS 194 Crore and the pre-sales fell by 24 percent JoJ to RS 636 Crore because of no new launches.The company ended FY25 with a net cash surplus of RS 395 Crore, supported by RS 585 Crore in cash and equivalents and gross fault of RS 190 Crore. About FY25–28 it projects a CAGR of 20 percent in turnover, 17 percent in EBITDA and 15.9 percent in net income, with EBITDA and Net margins that are expected to remain stable by 20 percent and 10.5 percent respectively. Raymond Realty also wants a net debt-free status and a roe of 16.2 percent at FY28.(Disclaimer: recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the opinion of the Times of India.)