Moneycontrol Bureau Shares of Oberoi Realty rose over 3 percent intraday on Thursday. Bank of America Merrill Lynch has maintained a buy rating with a target of Rs 335 per share.
The brokerage expects multiple triggers for Oberoi over next three-four quarters. It says that the real estate developer is eyeing launches in the upcoming period. Launch at Borivali is during an auspicious period in October-November while Mulund phase II is expected to launch soon as approvals are already received.
Oberoi Realty is likely to launch Worli in Q4FY16 and Goregaon as early as H1FY17. “The market isn't valuing all upcoming launches & additional FSI, “ it says.
The Mumbai based realtor's first quarter (April - June, FY14) standalone net profit dipped 33 percent year-on-year to about 80 crore, dented by lower other income and higher operating costs. While other income plunged 81 percent to just 17 crore, operating costs spiked a little more than 38 percent during the three-month period. However, net sales jumped up nearly 60 percent to Rs 168 crore. Other operating income surged close to ten times at Rs 6.13 crore compared with just Rs 61 lakh in the corresponding quarter of the previous year FY13. During the quarter, total expenditure rose 29 percent y-o-y to Rs 76 crore.
At 10:12 hrs Oberoi Realty was quoting at Rs 259.50, up Rs 7.60, or 3.02 percent on the BSE.
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