Last Updated: Wednesday, April 13, 2016

9 Reasons Why You Should Invest in Indiabulls Real Estate (IBREL)

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Find in depth analysis of Indiabulls Real Estate, Indiabulls Real Estate Price, Indiabulls Real Estate Target, Indiabulls Real Estate Multibagger, Indiabulls Real Estate Value pick, Quality mid cap realty stock, shares of Indiabulls Real Estate. Expert opinion on Indiabulls Real Estate, Brokers view on Indiabulls Real Estate. Multibagger 2016 shares in real estate.


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Indiabulls Real Estate (IBR) is one of the largest real estate company in India. Company's development projects are spreading across high-end office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, state of the art special economic zones and infrastructure development. Indiabulls Real Estate (IBREL) has around 30 ongoing projects totaling approx 70 million sq. feet, 2500 acres of SEZ development and additional land bank of 1000 acres. For detail read at official site of Indiabulls Real Estate (IBR)

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Indiabulls Real Estate is relatively a new player in real estate business, in spite of this IBR has delivered a record 3.3 million sq ft developed space valued at USD $ 1.75 billion within 4 years of inception. Some of the major commercial tenants of Indiabulls Real Estate are Franklin Templeton, Vodafone, Yes bank, Canadian consulate etc.
Latest Numbers:
  • MARKET CAP (RS CR) : 2,779.03
  • P/E : 38.46
  • BOOK VALUE (RS) : 114.30
  • DIV (%) : 0.00%
  • INDUSTRY P/E : 23.63
  • EPS (TTM) : 1.43
  • PRICE/BOOK : 0.48
  • FACE VALUE (RS) : 2.00

Reasons why you should invest in Indiabulls Real Estate (IBREL)




  1. IBR having significant ongoing projects which are scheduled to deliver over the next 18 to 24 months, expecting huge cash inflow. The company has also proud owner of massive land bank; it could deliver strong numbers due to sufficient revenue growth and its profitability over the next 3 to 5 years.
  2. Most of the properties acquired by IBR are through relatively transparent means i.e. mainly through public auctions hence the risk in term of opaqueness of the Indian real estate sector is low. The company has sold 3.40 million sq ft of land worth approx 3000 crores in FY2014-15. The company achieved sales bookings of Rs 733 crore in the quarter ended December.
  3. Indiabulls Real Estate (IBR) is under the flagship of famous Indiabulls group which have been able in making regular, consistent and huge dividend payouts. Though company has not delivered dividend in previous year, the dividend payouts by Indiabulls Housing finance have been excellent with approx 600% in FY2013, 1400% in FY2014. Similarly Payouts by IBREL have been 100% in FY2013 and 150% in FY2014. In few words there is strong chance of delivering excellent dividend in coming year by the company.
  4. Promoters own 42.73% of the company and none of it is pledged. FII's own around 25% and some of the HDFC, Kotak and HSBC mutual funds recently added this stock to some of their schemes.
  5.  The company recently on 1st April, 2016, allotted 4.36 crore equity shares at Rs 67/share to promoter group companies.
  6. Indiabulls Real Estate Ltd (IBREL) has recently cut its net debt by about Rs 550 crore in the first 9 months of this fiscal in this way the company has been able to reduce its net debt by Rs 225 crore to Rs 4,928 crore at the end of the December quarter of fy 2015-16. According to the company in its presentation “Further, net debt reduction of Rs 130 crore planned and expected in last quarter of current financial year, to achieve the target net debt of Rs 4,800 crore as on 31st March, 2016,".
  7. Decreasing interest rates in India will help overall real estate companies as buyer will have less interest burden and lower EMI. Further decreasing interest rates on housing loans and infrastructure projects will directly help them over the next 3 to 5 years, So we see improvement in its revenues and margins.
  8. Company's 52-week high of the share is Rs 73.55 while its 52-week low is Rs 41.00, so as per risk reward ratio Indiabulls Real Estate is a value pick.
  9. Most of the stock brokers are bullish on Indiabulls Real Estate Ltd; Motilal Oswal has given a target of  Rs. 88, FirstCall of  Rs. 66.


"Shares of Indiabulls Real Estate Ltd (IBREL)  On April 13, 2016, closed at Rs 55.00, up Rs 1.00, or 1.85 percent. Indiabulls Real Estate Ltd (IBREL) made 52-week high of the share at Rs 73.55 while its 52-week low was Rs 41.00."

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