Target: ₹2,560
CMP: ₹1,764
Oberoi Realty has revealed plans to expand its presence in key markets like Delhi NCR, where there is ample potential and absorption capacity for premium projects. The increasing trend towards premiumisation in these regions is expected to drive the company’s collections. It is anticipated that Oberoi will secure a strong foothold in these new markets, achieving a booking rate of over 40-50 per cent within the first year of launch.
The company is currently seeing strong interest in its newly launched project in Thane, with more launches in the pipeline. By the end of FY27, bookings are forecasted to surpass ₹9,000 crore, driven by projects in Thane, South Mumbai, and Delhi NCR.
Oberoi Realty has strategically planned its launch schedule for the upcoming quarters. Its robust annuity business and ready-to-sell inventory are expected to bolster its cash position. Moreover, the company has been actively acquiring land parcels in key micro markets, resulting in a geographically diversified portfolio. The focus remains on maintaining low leverage to further strengthen its balance sheet.
Key risks: The company will need to launch multiple projects to achieve its targeted Gross Development Value (GDV) and pre-sales for the fiscal year. Following a slower performance in H1-FY25, Oberoi may face challenges in sustaining its momentum in regions beyond its core domain.
