Buy Largecap Realty Stock For 28% Upside, With Strong Launch Pipeline: Motilal Oswal

Motilal Oswal, a leading brokerage firm recommends investors buying the stock of Oberoi Realty. The management continues to remain committed on BD and is close to signing a redevelopment project in Mumbai. The company has also paid some advances in 2QFY23. The decision to develop a retail or residential project at Glaxo land will be taken during the current quarter.

Stock To Buy: Target Price

The Current Market Price (CMP) of Oberoi Realty is around Rs. 858. Motilal Oswal has estimated a Target Price for the stock at Rs. 1100. This stock has the potential to give a 28% return, in the upcoming 1 year. It is a bluechip stock with a market capitalization of around Rs. 31,766 crore.

Stock Outlook
Current Market Price (CMP)	Rs. 858
Target Price	Rs. 1100
Potential Upside	28.00%
52-week high share price	Rs. 1,088.95
52-week low share price	Rs. 725.95

Pre-sales growth

Oberoi Realty (OBER) clocked a pre-sales of Rs. 11.5b in 2QFY23, up 39% YoY/52% QoQ and was 28% above our estimate. OBER reopened sales at its ultra-luxury project 360 West (Worli), and reported sales of eight units worth INR6b (>50% contribution). Management expects the momentum to continue. Occupancy at Commerz I improved marginally QoQ. Revenue/EBITDA for the commercial portfolio remained flat QoQ at Rs. 711m/Rs. 667m, respectively. ARR at the Westin Hotel improved 5% QoQ and led to flat revenue in the Hospitality segment despite a drop in occupancy to 83% in 2Q from 91% in 1Q.

Stock Valuation - mentioned by Motilal Oswal

Giving a buy rating the brokerage firm stated, "Because of the delayed execution at Mulund projects, we reduce our FY23/FY24 EBITDA estimates by 13%/12%, respectively. Management indicated a strong visibility on business development that will provide further growth visibility and will be a key re-rating trigger. Reiterate Buy with an unchanged SOTP-based target price of Rs. 1,100, implying 28% upside."

Disclaimer

The above stock was picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.