Shares of Oberoi Realty Ltd surged 3.99% to trade at ₹2,202.30 on Saturday after Axis Capital initiated coverage on the stock with a BUY recommendation and a target price of ₹2,560/share, implying an upside potential of 21%. The stock witnessed strong investor interest, touching an intraday high of ₹2,207.65 and a low of ₹2,135.60.
Axis Capital highlighted Oberoi Realty’s dominance in the Mumbai Metropolitan Region (MMR) with its diversified developments across residential, retail, hospitality, and infrastructure segments. The brokerage emphasized the company’s strong cashflows and low leverage as key strengths, enabling it to fundraise up to ₹6,000 crore, which could generate a Gross Development Value (GDV) of ₹70,000-80,000 crore in the coming years. With a net debt-to-equity ratio of 0.02, Oberoi Realty remains well-positioned for large-scale acquisitions and business expansion.
Axis Capital’s report further pointed out the company’s industry-leading EBITDA margins of over 50%, highlighting its financial resilience and ability to capitalize on lucrative opportunities. The brokerage’s valuation is backed by Oberoi Realty’s dominant market position, robust annuity business scale-up, entry into key new markets, and its consistent financial discipline.
Oberoi Realty’s bullish momentum aligns with a broader market focus on real estate stocks amid expectations of improving demand and stronger execution capabilities in the luxury housing segment.
