Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Buy Oberoi Realty; target of Rs 1100: Motilal Oswal

Motilal Oswal is bullish on Oberoi Realty recommended buy rating on the stock with a target price of Rs 1100 in its research report dated October 17, 2022.

October 18, 2022 / 08:00 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Oberoi Realty

Oberoi Realty (OBER) clocked a pre-sales of INR11.5b in 2QFY23, up 39% YoY/52% QoQ and was 28% above our estimate. OBER reopened sales at its ultra-luxury project 360 West (Worli), and reported sales of eight units worth INR6b (>50% contribution). Management expects the momentum to continue. Occupancy at Commerz I improved marginally QoQ. Revenue/EBITDA for the commercial portfolio remained flat QoQ at INR711m/INR667m, respectively. ARR at the Westin Hotel improved 5% QoQ and led to flat revenue in the Hospitality segment despite a drop in occupancy to 83% in 2Q from 91% in 1Q. Revenue declined 9% YoY/25% QoQ to INR6.9b and was 27% below our estimate due to slower-than-expected execution at Mulund projects. EBITDA margin remained healthy at 45%. PAT stood at INR3.1b, up 20% YoY but down 21% QoQ and was 46% below our estimate.

Outlook

Management indicated a strong visibility on business development that will provide further growth visibility and will be a key re-rating trigger. Reiterate BUY with an unchanged SOTP-based TP of INR1,100, implying 28% upside.