In Thursday’s trading session, the shares of one of the leading real estate development companies in the country, jumped nearly 5 percent after Axis Direct initiated a Buy target with a 45 percent upside potential.
Price action
With a market capitalization of Rs 66,208.33 crores, the shares of Oberoi Realty Limited jumped 4.9 percent to a day’s high of Rs 1,849.95 per share, compared to its previous closing price of Rs 1,763.15 per share. The stock reiterated from its day’s high and was trading at Rs 1,822.05 which is 3.28 percent higher than the previous closing price.
What Happened
The stock surged after Axis Direct initiated a Buy target with a 45 percent upside potential from its previous closing price of Rs. 1,820 as of January 22, 2025. The target price is set at Rs. 2,560 while the previous closing price was Rs 1,763.15 per share.
Rationale behind recommendation
Market Expansion: Oberoi Realty aims to capture key markets like Delhi NCR, with bookings expected to surpass ₹9,000 crore by FY27E, driven by projects in Thane and South Mumbai.
Portfolio Growth: Their leasing portfolio, including Commerz and Borivali Mall, maintains over 90 percent occupancy and delivers EBITDA margins above 90 percent. Further, the office portfolio is expected to generate Rs 1,000 crore in annual rentals with 1,000 keys added to the hospitality segment.
Financial Strength: The company plans to raise Rs 6,000 crore, generating a GDV (Gross Development Value) of Rs 70,000 to 80,000 crore. In terms of liquidity, the company boasts a low debt-to-equity ratio of 0.02.
About the Company
Oberoi Realty Limited is a real estate development company that is engaged in initiatives across the residential, office space, retail, hospitality, and social infrastructure verticals. The company has four decades of experience with the completion of 47 projects in strategic locations across the Mumbai skyline. The company has covered 29.72 million sq.ft. as of March 2024.
Q3FY25 Results
On January 20, Oberoi Realty Ltd reported a 34 percent YoY increase in revenue from Rs 1,053.7 crore to Rs 1,411 crore for Q3 ended December 31, 2024. This was accompanied by a 71.7 percent YoY increase in net profit from Rs 360.2 crore to Rs 618.4 crore during the same period.
Written by Shwetha Sairam
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
