Shares of Oberoi Realty surged over 4 percent in trade on May 15 and scaled a new all-time peak of Rs 1629.05 apiece, a day after the company posted stellar set of numbers for the March quarter.
The Mumbai-based real estate developer's net profit for Q4 FY24 soared 64 percent year-on-year to an all-time high of Rs 788 crore, led by robust demand and strong operational performance.
Revenue grew by nearly 37 percent on year to Rs 1,315 crore for the quarter under review, up from Rs 1,082.85 crore in the year-ago period.
"The residential sector continues to witness significant sales traction driven by end-user demand and a rising desire for homeownership," said Vikas Oberoi, CMD, Oberoi Realty.
Meanwhile, the company also entered into an agreement for the development and redevelopment of around 12,790 sq.mtr. land parcel in Worli, Mumbai. Nuvama Institutional Equities estimates the company to be able to generate pre-sales of Rs 6,400 crore from the said project.
"Through this deal, the company is tapping the significant redevelopment opportunity in Mumbai and also addressing concerns about the pace of business development," Nuvama added.
On that account, Nuvama also raised its price target for the stock by 6 percent to Rs 1,596 while it retained its 'hold' call. The brokerage believes a traction in pre-sales and project launches for Oberoi Realty can be a potential stock catalyst.
The Mumbai-based real-estate developer also received approval from its board to raise funds of up to Rs 4,000 crore through the issuance of non-convertible debentures (NCDs) and a qualified institutional placement (QIP) of equity shares.
The fundraise plan includes the issuance of NCDs worth up to Rs 2,000 crore via private placement, with the rest to be raised through the QIP route.
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