Hold Oberoi Realty; target of Rs 385: ICICI Direct

ICICI Direct's research report on Oberoi Realty

RERA has been implemented from May 1, 2017 in Maharashtra. RERA seeks to bring clarity and fair practices that would protect the interests of buyers and also impose penalties on errant builders. It would bring in much needed transparency in the real estate sector and also consumer’s confidence back into the sector.

Outlook

We like ORL given the quality of land bank, its healthy balance sheet & management bandwidth to execute large projects. Though sales volumes look strong sequentially, we await a meaningful pick-up in sales volumes, going forward. Further, the recent rally in the stock (up 21% in past three months) leaves no room for upside. Hence, we continue to maintain our HOLD recommendation on the stock with revised TP of Rs 385.