After a 56% jump in 6 months, Anand Rathi sees 30% further upside in this realty stock - Rationale, target price
A realty stock has seen healthy gains in the recent past, rising as much as 56% in the last six months, yet brokerage firm Anand Rathi Share and Stock Brokers believes the stock can rise further by 30% from the current levels.
The stock is Raymond Realty. Raymond Realty, part of the Raymond Group, is one of India’s fastest-growing real estate developers, headquartered in Mumbai.
Recently, on 5 October, the company announced that its pre-sales rose by 98% year-on-year (YoY) to ₹902 crore and collections rose 67% YoY to ₹682 crore in the July-September quarter of the financial year 2026-27 (Q2FY27).
For the first half of the financial year, the company's pre-sales jumped by 111% YoY to ₹1,602 crore and collections climbed 57% YoY to ₹1,233 crore.
The company said there were no new project launches in the September quarter and growth was driven entirely by sustained sales velocity and steady price realisation within the existing "Address by GS" portfolio.
The company further said it is accelerating its growth trajectory over the next two quarters with a strong pipeline of MMR (Mumbai Metropolitan Region) launches, representing a cumulative gross development value of over ₹4,100 crore.
Its gross borrowings during the quarter increased by ₹125 crore, bringing the total to ₹1,220 crore as of 30 September 2026.
According to the company, backed by liquidity of ₹306 crore, its net debt stood at ₹914 crore, maintaining a net debt-to-equity ratio well below its board-approved ceiling of 1 time.
For FY27, Raymond Realty said it is on track for nearly 20% growth in pre-sales, ROCE of nearly 20%, EBITDA margin of 17–19% and PAT margin of 9–10%.
Raymond Realty share price ended 1.31% higher at ₹678.10 on the BSE on Wednesday, 14 October, snapping its two-day losing streak.
Over the last six months, the stock has jumped 56% compared to a 5% decline in the equity benchmark Sensex. Year-to-date, the stock is up 30%, while the Sensex has lost nearly 15%.
The realty stock hit a 52-week high of ₹741.90 on 25 September after hitting a 52-week low of ₹350 on 16 March this year.
Brokerage firm Anand Rathi Share and Stock Brokers has a "buy" recommendation on the stock with a target price of ₹879. This implies an almost 30% upside in the stock from its current market price of ₹678.10.
"We initiate coverage with a 'buy' rating with a target price of ₹879, based on an NAV methodology. The valuation is supported by the value of the identified development portfolio and the longer-term potential of its joint development agreement (JDA)-led development franchise, with the implied 6.6 times FY29E embedded EV/EBITDA," said Anand Rathi.
The brokerage firm underscored that Raymond Realty is transitioning into an asset-light MMR platform, with nearly ₹52,000 crore of development potential across nearly ₹25,000 crore of owned land in Thane and nearly ₹27,000 crore across eight JDAs.
According to the brokerage firm, the company's ability to selectively secure mature, execution-ready opportunities, enabling faster conversion from signing to launch and scaling across Mumbai without acquiring land, is the key differentiator.
"The strategy is already ahead of plan: JDA contribution to bookings rose from 22% in FY25 to 54% in FY26 and 64% in Q1FY27, crossing the company’s 50% target a year early. We see Thane as the cash engine and JDA as the growth engine, with annual cash generation of nearly ₹600- ₹750 crore from the combined portfolio to fund further expansion," said Anand Rathi.
The brokerage firm forecasts bookings and collections to clock nearly 24% and 46% CAGR, respectively, over FY26-29E.
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HomeMarketsStock MarketsAfter a 56% jump in 6 months, Anand Rathi sees 30% further upside in this realty stock - Rationale, target price
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