Kotak Securities upgrades Oberoi Realty to Buy, raises target to Rs 560 on likely strong FY19

Research firm Kotak Securities has upgraded its rating for Oberoi Realty to Buy from Reduce earlier and also raised target price to Rs 560 from Rs 535. It implies 18 percent potential upside.

The stock rallied 4.7 intraday on Tuesday.

The research house expects more promising FY19 on account of Thane launch and cash generation from Three Sixty West.

Improving pace of execution and sales at Mulund will further bolster investor sentiment, it feels.

Kotak expects under-leveraged balance sheet to allow Oberoi secure new development prospects.

Meanwhile, in the last month, Oberoi Realty raised Rs 1,200 crore by making an allotment of 2.4 crore equity shares to qualified institutional buyers at the price of Rs 500 per share.

At 12:12 hours IST, the stock price was quoting at Rs 485.25, up Rs 12.25, or 2.59 percent on the BSE.