According to inputs from domestic brokerage firm SBI Securities, the stock is expected to list in the range of Rs 897 to Rs 1,430, based on estimated FY26 EV/EBITDA multiples of 11–15x and EBITDA growth expectations of 0–20% over FY25.
In a base case scenario, assuming 10% EBITDA growth in FY26 and an EV/EBITDA multiple of 13x (which factors in a 23.5% discount to peers), the brokerage pegs the fair value at Rs 1,148.
SBI Securities notes that Raymond Realty’s valuation is benchmarked against a peer average EV/EBITDA multiple of 17x (including listed players like Arkade Developers, Keystone Realtors, and Sunteck Realty).
Post listing, analysts expect the Street to monitor key performance indicators (KPIs) such as pre-sales, embedded EBITDA margins, debt levels, and cash flows to evaluate the company’s ongoing financial health.
Meanwhile, another brokerage firm Ventura Securities has anticipated a FY28 DCF-based price target of Rs 1,383 per share for the stock.“Given the substantial opportunities and growth prospects, the demerger of RRL will unlock significant value for shareholders by allowing the company to pursue sustainable growth with a focused, pure-play real estate strategy. RRL is set to be listed in July 2025, and our FY28 DCF-based price target Rs 1,383 per share,” Ventura said in its note.
Medium-term outlook and strategy
Raymond Realty’s operations are primarily concentrated in Thane, where it holds a 100-acre land parcel, with around 60 acres expected to be developed over the next 6–8 years.
The revenue contribution from its Joint Development Agreement (JDA) model is expected to be 40–45% in the next 7 years, rising to ~70% thereafter, supporting an asset-light growth model.
The company aims to maintain a RoCE (Return on Capital Employed) of 20–22% on its projects and has set internal targets of 15% revenue growth and 20% EBITDA growth annually going forward.
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Project pipeline
As part of its development plan for FY26, Raymond Realty will launch two new projects on its own land in Thane and four projects under the JDA model. Over the next 3–4 years, JDA-based projects are expected to contribute nearly 50% of the company’s annual pre-sales.
The company’s current portfolio includes a total Gross Development Value (GDV) of approximately Rs 40,000 crore, comprising:
Rs 25,000 crore from its own land, with Rs 9,000 crore from under-development parcels and Rs 16,000 crore from future potential development.
Rs 14,000 crore from existing JDA projects, both launched and recently signed.
Brand positioning
Raymond Realty is also working on building a strong brand identity across segments. Its brand portfolio includes:
- TenX for aspirational housing
- The Address by GS in the premium segment
- Invictus by GS in the luxury segment
Financials
In terms of financial performance, SBI Securities highlights that the real estate business reported a 13% YoY growth in both revenue and EBITDA in Q4FY25, reaching Rs 766 crore and Rs 194 crore, respectively.
For FY25, revenue rose 45% YoY to Rs 2,313 crore and EBITDA grew 37% YoY to Rs 507 crore. While Q4 EBITDA margin held steady at 25.3%, the full-year EBITDA margin dipped 140 bps YoY to 21.9%.
Pre-sales in Q4FY25 stood at Rs 636 crore, down 24% YoY, mainly due to the absence of new launches during the quarter.
As of March 31, 2025, the company had a net cash surplus of Rs 395 crore, with closing cash and cash equivalents at Rs 585 crore and gross debt at Rs 190 crore. The company follows the Percentage Completion Method for revenue recognition.
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