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    Buy Oberoi Realty, target price Rs 988: ICICI Securities

    Synopsis

    Oberoi Realty Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 31327.97 Crore) operating in Real Estate sector.

    Oberoi Realty
    Promoters held 67.7 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.42 per cent, DIIs 9.99 per cent.
    ICICI Securities has buy call on Oberoi Realty with a target price of Rs 988. The current market price of Oberoi Realty is Rs 854.85. Time period given by analyst is one year when Oberoi Realty Ltd. price can reach defined target.

    Oberoi Realty Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 31327.97 Crore) operating in Real Estate sector.

    Oberoi Realty Ltd. key Products/Revenue Segments include Income from Project Development, Lease Rentals, Income from Hospitality and Other Operating Revenue for the year ending 31-Mar-2022.


    Financials
    For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 934.81 Crore, up 10.90 % from last quarter Total Income of Rs 842.94 Crore and up 217.13 % from last year same quarter Total Income of Rs 294.77 Crore. Company reported net profit after tax of Rs 357.79 Crore in latest quarter.
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    Investment Rationale
    Oberoi Realty (OBER) clocked Q1FY23 sales bookings worth Rs 7.6bn (I-sec estimate of Rs8.0bn) with no new launches and the quarter’s sales have tracked the typical quarterly sustenance sales of Rs8-9bn seen since Q2FY22. The launch of the Thane project in Q2FY23 and receipt of the Occupation Certificate (OC) at 360 West, Worli in Jun’22 may be the key drivers for FY23 sales. While exact timing and quantum of launches is awaited, we expect OBER to clock at least Rs58bn of sales bookings in FY23E and FY24E vs. Rs38.8bn in FY22 and Rs34.3bn in FY21. Further, with the Borivali mall and Commerz III office set to see rentals commence in FY24E, the brokerage expects OBER’s rental income to rise to Rs8.2bn in FY24E from Rs2.4bn in FY22. It maintains BUY rating with a revised SoTP based target price of Rs988/share (earlier Rs943) which assumes a 20% premium to NAV. Key risks are a decline in demand for residential properties and weakness in office leasing.

    Promoter/FII Holdings
    Promoters held 67.7 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.42 per cent, DIIs 9.99 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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