HDFC Securities' research report on Oberoi Realty
Oberoi Realty (ORL) registered presales of INR 25.5bn (including 360W INR 18.7bn under Oasis, +176% YoY). ORL has a strong launch pipeline for FY24, with a new tower expected to open up in Goregaon and a project launch in Thane (Pokhran and Kolshet) that is expected by Q3/Q4FY24 (3-4msf in Phase 1). Commerz 3 and Borivali Mall are expected to start operation by Mar/Jun’24 resp., with rental potential of INR c.5bn in Commerz 3 and INR c.3.5bn in the mall. The gross debt inched up to INR 39bn (INR 30bn in Dec’22), mainly to finance the unit sale transaction with Oasis Realty. Whilst the results seemed a bit tepid, we believe ORL will generate robust cash flows from ready-to-movein inventory in the 360W and Mulund projects. Besides new business development outside MMR shall aid further rerating.
Outlook
We remain constructive on ORL and maintain BUY, with an unchanged NAV-based TP of INR 1,158/sh.
For all recommendations report, click here
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