Accumulate Oberoi Realty; target of Rs 314: PLilladher

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26 Aug, 2025 12:21

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Prabhudas Lilladher is bullish on Oberoi Realty and has recommended accumulate rating on the stock with a target of Rs 314 in its October 22, 2012 research report.

“Oberoi Realty, on a sequential basis, the company’s volumes increased by 5% to 130K sq.ft led by sales and launch of Oberoi Splendor and Oberoi Esquire. However, on a YoY basis, the company witnessed a 30% decline in volumes as Oberoi Esquire was launched in the corresponding quarter last year. In value terms, sales increased 6.9% QoQ and declined 4.3% YoY. Revenues for the quarter stood at Rs2.58bn for the quarter, increase of 16.1% YoY and 28.9% QoQ. Margins stood strong at 58.1%, resulting in PAT growth of 11.6% YoY and 23.4% QoQ to Rs1.24bn.”

“The Mulund launch has been delayed as MoEF approvals that were expected for the Mulund project have moved slower than anticipated. However, the management claims to have made significant progress on this front and expects to launch the project as soon as approvals are received. At the Worli Oasis project, though the hotel operator has not yet been formally tied up, the company has soft launched the project. The response to the same has been quite healthy, with ~200K sq.ft sold, translating to ~Rs6bn in value terms. However, since allotment letters for the same are yet to be issued, it has not been included as a part of sales.”

“Since construction at Oberoi Esquire has been stalled on account of absence of certain approvals, the revenue threshold for this project is likely to be pushed into FY14. Besides, the delay in launches of Worli Oasis as well the Mulund project is likely to result in lower-than-expected revenues for FY13. We are, therefore, reducing our revenue and PAT estimates by 11% and 12%, respectively. On account of a spill over into FY14, we are increasing our revenue and PAT estimates for FY14 by 6% and 19%, respectively. Our NAV for the company stands at Rs314. We maintain accumulate,” says Prabhudas Lilladher research report.

Non-Institutions holding more than 90% in Indian cos

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