Buy Oberoi Realty; target of Rs 340: ICICIDirect

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26 Aug, 2025 12:21

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ICICIDirect's research report on Oberoi RealtyOberoi Realty’s (ORL) consolidated topline slumped 34.2% YoY to | 226.7 crore well below our expectation of | 302.5 crore mainly on account of lower-than-expected sales volume and project execution in Goregaon projects . The EBITDA margin contracted 627 bps to 45.5% and was below our expectation of 54.0% mainly on account of a change in the project mix with the topline mainly driven by the Esquire project. The bottomline declined 37.3% YoY to | 64.6 crore and was below our expectation of | 109.8 crore mainly due to lower-than-expected operating performance and higher effective tax rate (36.5% in Q4FY16 vs. our expectation of 31.8%) . The company has passed an enabling resolution to issue equity worth up to | 750 crore and NCDs worth up to | 1500 crore.Though sales volumes have been subdued in Q4FY16, we like ORL in the real estate sector given the quality of land bank, healthy balance sheet, management bandwidth to execute projects and better sales volumes through new launches. Hence, we remain positive on the stock and maintain our BUY rating on the stock with a revised target price of | 340.

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