Aditya Birla Real Estate Share Price Slides After Supreme Court Overturns 6.31-Acre Land Ruling

Shares of Aditya Birla Real Estate Ltd. (formerly Century Textiles and Industries Ltd.) saw a nearly 5% decline after the Supreme Court overturned a 2022 ruling by the Bombay High Court, which had favoured the company in a land dispute with the Municipal Corporation of Greater Mumbai.

The land in question is a 6.31-acre leasehold property located in Lower Parel, Mumbai, under C.S. No. 1546, which Aditya Birla Real Estate (then Century Textiles) claims the rights to. The land had been leased to the company by the Improvement Trust Board (now MCGM) under the Poorer Classes Accommodation Scheme. Following the expiration of the 28-year lease period, the company had been in possession of the land and had paid the property taxes.

In March 2022, the Bombay High Court had directed MCGM to transfer the land to the company. However, the Supreme Court overturned this judgment on Jan. 7, 2025, siding with MCGM's appeal against the Bombay High Court ruling for the 6.31-acre plot in Mumbai.

Despite the setback, the company stated that the Supreme Court's ruling will not have an immediate material impact on its operations or financials.

The scrip fell as much as 4.62% before paring loss to trade 3.46% lower at Rs 2,231.80 apiece, as of 3:04 p.m. This compares to a 0.17% decline in the NSE Nifty 50.

It has risen 49.02% in the last 12 months. Total traded volume so far in the day stood at 1.9 times its 30-day average. The relative strength index was at 26.

All four analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 53.6%.