Buy Oberoi Realty, target price Rs 1118: HDFC Securities

HDFC Securities has buy call on Oberoi Realty with a target price of Rs 1118. The current market price of Oberoi Realty is Rs 862.65. 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 31222.52 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.

Investment Rationale
FY22 was a defining year for Oberoi Realty (ORL), as it (1) registered the highest-ever annual presales of INR 40bn and (2) reported the highest-ever annual profit of INR 10bn. Multiple tailwinds that could lead to a further rerating include: (1) a strong sales pipeline for the next 12 months, with new towers expected in Borivali and Goregaon; (2) Thane launch, targeted for Q2FY23. Further, the unsold stock monetisation in Mulund and Worli could add to overall sales. In its rental portfolio, it is rethinking making a comeback in the office and retail asset space and is expected to take decision on Glaxo Worli retail/office soon. ORL is also looking at rental asset development opportunities in NCR/southern markets. It already has FSI in Mulund, Borivali, and Thane for office asset development.

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.