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Oberoi Realty shares fall 2%; HDFC Sec stays neutral on the stock post Q3

The earnings of the company failed to impress the market as brokerages came out with mixed views on the stock.

February 11, 2020 / 01:40 PM IST
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Shares of Oberoi Realty continued trading in the negative territory, falling almost 2 percent in intraday trade on BSE and looked on course to extend their losing run into the third consecutive session on February 11.

The stock has been under pressure since February 7 when it reported a 7 percent increase in consolidated net profit at Rs 148.24 crore for the quarter ended December despite a fall in total income. Its net profit in the year-ago period stood at Rs 137.93 crore.

Total income fell to Rs 536.53 crore in the third quarter of 2019-20 from Rs 548.79 crore in the same period a year ago, according to a regulatory filing.

The earnings of the company failed to impress the market as brokerages came out with mixed views on the stock.

HDFC Securities has a 'neutral' view on the stock with a target price of Rs 573.

"With a muted residential pre-sales backdrop, Oberoi Realty is utilising surplus cash flows to build a robust leased asset portfolio. While in initial stages of construction and leasing, the rental potential of the Oberoi Realty portfolio is expected to increase from Rs 330 crore to Rs 1,500-1,800 crore over the next 3 years. This shall then become REIT able and unlock value for shareholders," said HDFC Securities.

As per the brokerage, key risks for the stock include approvals delays, the continuation of weak underlying demand and delays in a pre-lease tie-up of under construction lease portfolio.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol News
first published: Feb 11, 2020 01:40 pm

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