Buy Oberoi Realty; target of Rs 1140: Motilal Oswal

Motilal Oswal is bullish on Oberoi Realty recommended buy rating on the stock with a target price of Rs 1140 in its research report dated June 13, 2023.

Broker Research

June 14, 2023 / 13:09 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Oberoi Realty

OBER ended FY23 with a relatively moderate performance due to delays in the launch of key projects. It was the only company in our coverage universe that posted a decline in pre-sales in FY23. It now plans to rub off a subdued FY23 with the launch of multiple projects in FY24, including the first phase of its flagship project at Pokhran road in Thane with a development potential of 2.5msf and GDV of INR62b. Its smaller project at Kolshet road in Thane is also expected to be launched in FY24. The overall size of the project is 1.8msf across five towers. The company will initially launch three towers with expected GDV of INR22b. Finally, its ongoing project at Goregaon (Elysian) will also witness a new tower launch with 1msf development size and GDV of INR32b. Overall, OBER has a very strong launch pipeline with cumulative GDV of ~INR120b, which can help the company make up for its weak performance in FY23. Overall, given a strong project pipeline, we estimate OBER to clock bookings of INR56b in FY24 (up 73% YoY), with INR26b coming in from new projects.

Outlook

We believe strong cash generation will allow the company to look for aggressive business development opportunities, which will provide further growth visibility. We retain BUY on OBER with our SOTP-based TP of INR1,140, implying 16% upside potential.

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