Buy Oberoi Realty; target of Rs 1229: YES Securities

YES Securities is bullish on Oberoi Realty has recommended buy rating on the stock with a target price of Rs 1229 in its research report dated February 09, 2023.

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February 14, 2023 / 20:15 IST

26 Aug, 2025 12:21

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YES Securities' research report on Oberoi Realty

Oberoi Realty (OBER) achieved presales of 0.36msf translating to sales value of Rs6.3bn wherein Sky City contributed 72% to the total sales while remaining was contributed by Eternia & Enigma and company collected 4.3bn in Q3FY23. Oberoi Mall achieved 95% operating margin over the revenue of Rs373mn. Office assets clocked revenue of Rs364mn flat q/q and declined by 8.3% y/y with an EBITDA margin of 92.4%. The Westin posted strong revenue of Rs419mn with the EBITDA margin of 38% (551bps q/q) with ARR of Rs12,344/night (29.3% q/q) and RevPAR of Rs9,961 (26.2% q/q). OBER is geared up to launch Kolshet, Thane in mid of Mar’23 and Pokhran in Q1FY24E. In Q3FY23, OBER confirmed the entry in Gurgaon market and also acquired ~8acres land parcel from Blue Star, adjacent to the Pokhran 2 project. Additionally, Eternia & Enigma received part OC so sales velocity is expected to pick up in coming quarters. Borivali Mall’s superstructure is completed and should be operationalized by Sept-Oct’23E with optimal occupancy. As all the residential projects are cash flow positive and gearing of 0.21x, management is focusing on business development to strengthen the pipeline. We believe with sustenance of strong demand for larger houses, new launches to do well for OBER on the back of quality product & delivery track record. Land acquisition in the NCR market, reduces the OBER’s dependency on MMR.

Outlook

We continue to give a 20% premium to the current portfolio for being leader in the premium residential segment & arrived at SoTP based NAV of Rs1229/share and recommend ‘BUY’ rating with 45% upside.

For all recommendations report, click here