Nomura has reiterated its ‘Buy’ rating on Oberoi Realty, setting a target price of ₹2,500, implying a 25% upside from the current market price (CMP) of ₹2,002.00. The brokerage remains optimistic about the company’s strong performance across its residential, hotel, and annuity segments.
Key Highlights:
- Residential Segment:
- Pre-sales surged to ₹19 billion, marking a 145% year-on-year (YoY) and 34% quarter-on-quarter (QoQ) increase.
- Growth was driven by the launch of projects in Oberoi Garden City (OGC), Thane, which received strong buyer response.
- Hotel Segment:
- Revenues rose by 9% YoY, supported by robust demand.
- The segment achieved EBITDA margins of 42%, reflecting operational efficiency.
- Annuity Segment:
- Commerz III reported occupancy levels of 77%, up from 65% in Q2FY25, signaling improved leasing traction.
- Financial Performance:
- Revenue for Q3FY25 came in at ₹14.1 billion, showing a 34% YoY growth.
- EBITDA margins remained strong at 61%, showcasing the company’s ability to maintain profitability.
Nomura’s Take:
Nomura highlighted Oberoi Realty’s ability to capitalize on its diversified business model, with strong growth across residential, hotel, and annuity segments. The launch momentum in Thane and steady leasing in the commercial segment are expected to drive sustained growth in the coming quarters.
CMP and Target:
- Current Market Price (CMP): ₹2,002.00
- Target Price (TP): ₹2,500
- Upside Potential: 25%
Conclusion:
Nomura remains positive on Oberoi Realty, citing its robust operational performance and diversified revenue streams. The stock offers a compelling upside for investors looking for exposure to the real estate sector.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.