Nomura has initiated coverage on Oberoi Realty with a ‘Buy’ rating and a target price of ₹2,500 (implying a 21% upside from previous close of Rs 2057), underpinned by the company’s robust pre-sales trajectory and aggressive business development plans. The brokerage forecasts pre-sales to achieve a 40% CAGR over FY24-FY27, driven by strong demand for premium residential projects and strategic new launches. With embedded EBITDA margins of over 50%, Oberoi Realty is poised for significant profitability.
The company’s hotel and annuity segments are also expected to witness a 35% CAGR over the same period, contributing to a diversified revenue stream. Operating cash flows are projected to range between ₹30-40 billion annually until FY27, enabling investments in new business ventures and asset expansions.
Nomura highlights that Oberoi Realty’s focus on high-margin segments, combined with its ability to leverage cash flows for future growth, positions it as a top pick in the real estate sector, making it an attractive investment opportunity.
