Raymond Realty listing: Shares open below discovered price; brokerages still bullish on long-term prospects

Shares of Raymond Realty listed on the BSE at Rs 1,005 and on the NSE at Rs 1,000 on Tuesday, marking 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 listing followed the real estate arm’s demerger from Raymond Ltd, giving shareholders one Raymond Realty share for every Raymond Ltd share held, thus directly exposing them to the group’s property business for the first time.

Brokerages remain bullish despite the lower-than-expected opening. As reported by ET, Ventura Securities has pegged a target price of Rs 1,383 per share based on FY28 DCF projections, while SBI Securities values the stock between Rs 897 and Rs 1,430 depending on valuation multiples.

SBI has assigned a base case fair value of Rs 1,148, assuming a 10 per cent YoY EBITDA growth in FY26 and a 13x EV/EBITDA multiple.

Raymond Realty’s flagship operations are centred on a 100-acre land parcel in Thane, of which 40 acres with 4 million sq ft carpet area are under active development, holding an estimated revenue potential of Rs 9,000 crore.

The remaining 60 acres will be developed over the next 6–8 years, potentially adding Rs 16,000 crore in revenue.

Combined, the Thane land bank carries a Gross Development Value (GDV) of Rs 25,000 crore.

The company has also expanded through six Joint Development Agreements (JDAs) across Mumbai in Bandra, Mahim, Sion and Wadala. The JDA portfolio is expected to generate Rs 14,000 crore in revenue, with the model allowing Raymond Realty to skip land acquisition costs and focus on execution, a strategy that keeps its balance sheet light.

Around 40–45 per cent of future revenues are expected to come from JDA projects over the next seven years, rising to 70 per cent in the long term.

According to news agency PTI, chairman and MD Gautam Singhania emphasised financial discipline amid heated real estate pricing, stating, “I will do a deal only if it delivers on financial returns.” CEO Harmohan Sahni reinforced this approach, saying the firm will not sign projects unless profit margins are at least 20 per cent. Sahni revealed that out of 1,400 projects evaluated, only six were finalised.

For FY25, Raymond Realty posted a 45 per cent YoY increase in revenue to Rs 2,313 crore and a 37 per cent rise in EBITDA to Rs 507 crore. However, EBITDA margin declined slightly to 21.9 per cent.

In Q4FY25, revenue was Rs 766 crore, EBITDA stood at Rs 194 crore, and pre-sales fell 24 per cent YoY to Rs 636 crore due to 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 debt of Rs 190 crore. Over FY25–28, it projects a CAGR of 20 per cent in revenue, 17 per cent in EBITDA, and 15.9 per cent in net earnings, with EBITDA and net margins expected to remain steady at 20 per cent and 10.5 per cent, respectively.

Raymond Realty also aims to maintain a net-debt-free status and a RoE of 16.2 per cent by FY28.

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