Buy Oberoi Realty; target of Rs 290: Emkay

Brokerage house Emkay Global Financial Services is bullish on Oberoi Realty and has recommended buy rating on the stock with a target price of Rs 290 in its October 20, 2014 research report.

November 11, 2014 / 15:16 IST

26 Aug, 2025 12:21

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Emkay's research report on Oberoi Realty

Company sold 41,155 sf for Rs 986mn, down 18% QoQ and up 81% YoY, marginally above estimates. Sales mix in favor of Exquisite over Esquire as project nears completion

Collections for the quarter stood at Rs 1.87bn, up 36% QoQ and flat YoY. Higher collections QoQ despite of lower sales booking was mainly due to increase in collections from Oasis, Worli which stood at Rs 741mn

Operating Cash flows remain negative at Rs 1.24bn during the quarter as company continue to spend higher at Oasis, Worli. In Q2FY15, company spent Rs 1.24bn at Oasis taking the total spend to Rs 10.5bn

"OBRE continue to remain our preferred bet in the real estate space as there are multiple growth avenues, superior balance sheet, a strong brand equity to help capture any revival in real estate, well-located land bank, rentals higher than fixed costs and dominant presence in India’s financial capital. The only business issue was launches, which has got resolved. The company is very well placed to benefit from any revival in the economy and sentiments, leading to higher sales booking trajectory and leasing activity. Buy the stock for target price of Rs 290", says Emkay Global Financial Services research.