Raymond Realty Listing On July 1: Brokerages Bullish? What To Expect

Raymond Realty Ltd. is set to debut on the BSE and NSE on July 1, 2025, following its demerger from Raymond Ltd. Existing shareholders will receive one share of Raymond Realty for every share held in the parent company. This development is aimed at providing a focussed play on the company's real estate business primarily centered around the high-demand Mumbai Metropolitan Region.

Ahead of the listing, brokerages are bullish on Raymond Realty's asset-light development model, and high-margin project pipeline. The key narrative they indicate is strong visibility, consistent execution, and high monetisation potential from a deep land bank in Thane and redevelopment projects across Mumbai.

Ventura Securities has set a target price of Rs 1,383 per share for Raymond Realty, projecting revenue, Ebitda, and profit after tax to grow at CAGRs of 20%, 17%, and 15.9%, respectively between fiscals 2025 and 2028. The brokerage's bull case values the company at Rs 1,756 per share, while the bear case stands at Rs 1,056 per share.

Raymond Realty's net-debt-free model and stable margins are key positives, indicated the brokerage. The asset-light approach focusing on joint development agreements instead of outright land purchases is expected to preserve cash flows while ensuring faster project execution within RERA timelines, said Ventura Securities.

"RRL's projects in Mumbai and Thane reflect rising demand for urban redevelopment, and the model ensures healthy RoE at 16.2% by fiscal 2028," Ventura said.

Brokerage firm Nirmal Bang is positive on the company's pipeline visibility as well. It estimated Rs 9,000 crore in revenue from Thane land development over the next three years, with 7.4 million sq. ft. FSI still available. The brokerage also highlighted the company's selective, calibrated approach toward new geographies like Pune while remaining anchored in Mumbai and Thane for now.

Pending regulatory approvals, especially environmental clearances near sensitive ecological zones, remain the only notable near-term risk, highlighted the firm, but they are not seen derailing the broader execution plan.

Both Ventura and Nirmal Bang emphasise the significance of Mumbai's redevelopment wave. The company's ability to tap this trend without stretching its balance sheet positions it favourably against peers, they state.