Target: ₹2,560
CMP: ₹1,764
Oberoi Realty plans to expand into key markets such as Delhi NCR, which offers significant potential and absorption capacity for premium projects. A growing trend toward premiumisation in these regions is expected to boost the company’s collections. Oberoi is anticipated to establish a strong presence in these new markets, achieving over 40-50 per cent bookings within the year of launch.
The company is also experiencing strong traction for its new Thane launch, with additional launches anticipated from this project. By FY27, bookings are projected to exceed ₹9,000 crore, driven by launches in Thane, South Mumbai, and Delhi NCR.
The company has a strategically planned launch trajectory for the upcoming quarters. The strong annuity business and ready-to- sell inventory are expected to result in a strong cash position for the company. Additionally, it has been acquiring land parcels in key micro markets, resulting in a geographically diversified portfolio. The company is focused on maintaining low leverage to further enhance its balance sheet strength.
Key risks: The company must launch several projects to achieve its targeted GDV and pre-sales for the financial year. Since H1-FY25, it experienced slower performance; and Oberoi may encounter difficulties maintaining its momentum in regions outside its core domain.