Comments
Target: ₹1,158
CMP: ₹1,012.95
Oberoi Realty is set for a new phase of growth with new project launches planned for the next few years. After having registered decent pre-sales of ₹5,100 crore (+31 per cent year on year) in FY23, we expect it to clock ₹6,500 crore in pre-sales in FY24, backed by new tower launches in Goregoan Garden City and its first project launch in the Thane micro market.
Commerz 3, under its commercial portfolio, is expected to be operational by March 2024 (₹500 crore annual rental expected at maximum occupancy) and the Borivali mall is expected to start by June 2024 (₹350 crore annual rental expected at maximum occupancy).
We believe Oberoi Realty will generate robust cash flow from ready-to-move-in inventory in the 360W and Mulund projects. Besides, new business development outside Mumbai Metropolitan Region shall aid further re-rating.
In terms of GDV addition, the company acquired one land parcel of eight acres from Blue Star in February 2023 for ₹190 crore. In May 2023, it acquired another 6.3 acres from NRB Bearings. Both these land parcels are contiguous to the existing 60-acre land bank in Pokhran, Thane.
The management feels that Mumbai is set for a major boom, aided by a new coastal road, a metro rail and a trans-harbour link among the many ongoing infrastructure projects. With higher economic growth, the premium housing segment is expected to witness higher demand in the years to come.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.