Oberoi Realty
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Oberoi Realty's recent strategic initiatives, particularly its expansion into the NCR market with the successful launch of the 360 North project, underscore management's commitment to aggressive growth. This transition from a Mumbai-centric developer to a national player is expected to enhance revenue visibility, supported by a robust pipeline of new launches and strong demand for luxury residential projects. The company's focus on scaling its annuity and hospitality segments is anticipated to provide stable cash flows, further reinforcing its financial outlook. Despite a projected 22% CAGR in pre-sales over FY26-28, potential execution risks and regulatory challenges remain pertinent. Vista's forecast reflects a stable margin outlook, with profit margins expected to remain above 50%, aligning with the company's fair valuation and expected upside of approximately 8.22%. The favorable macro environment, characterized by improving growth indicators, supports Oberoi's growth trajectory, although inflationary pressures and rising construction costs could pose challenges. Over the next 12-24 months, key opportunities include successful project launches and enhanced hospitality revenues, while watchpoints include potential delays in project approvals and market cyclicality risks
Why We Like This Stock
- Successful launch of the 360 North project enhances revenue visibility and supports aggressive growth
- Strong demand for luxury residential projects and a robust pipeline are expected to drive a 22% CAGR in pre-sales
- Expansion into the NCR market and scaling of hospitality segments provide stable cash flows and growth potential
Things To Watch Out For
- Execution risks related to multiple project launches across different regions could impact performance
- Potential regulatory challenges in land acquisition processes may hinder growth
- Rising construction costs and inflationary pressures could affect profit margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,496 | 5,286 | 6,009 | 5,771 | 6,915 |
| Profit Before Tax (Cr.) | 2,258 | 2,868 | 3,299 | 3,228 | 3,840 |
| PBT Margin | 50.2% | 54.3% | 5490.1% | 55.9% | 55.5% |
| Net Profit (Cr.) | 1,779 | 2,231 | 2,489 | 2,452 | 2,916 |
| Earnings Per Share | 48.9 | 61.4 | 68.5 | 67.4 | 80.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 2,200 | 21-Jul-2026 |
| CLSA | ► Hold | 1,500 | 12-May-2026 |
| Elara Capital | ▲ Buy | 2,500 | 21-Jul-2026 |
| HDFC Securities | ▲ Buy | 2,490 | 29-Jun-2026 |
| HSBC | ▲ Buy | 2,310 | 21-Jul-2026 |
| ICICI Securities | ▲ Buy | 2,151 | 13-Aug-2026 |
| JPMorgan | ▲ Overweight | 2,050 | 20-Jul-2026 |
| Jeffries | ► Hold | 1,970 | 21-Jul-2026 |
| Kotak Securities | ▼ Reduce | 1,900 | 21-Jul-2026 |
| Morgan Stanley | ► Equalweight | 1,440 | 12-Jun-2026 |
| Motilal Oswal | ► Neutral | 2,000 | 21-Jul-2026 |
| Nomura | ▲ Buy | 2,090 | 21-Jul-2026 |
| Prabhudas Liladhar | ► Accumulate | 2,100 | 21-Jul-2026 |
Company Overview
Show Company Profile
Oberoi Realty Limited, together with its subsidiaries, engages in real estate development business in India. The company operates through the Real Estate and the Hospitality segment. It develops and sells residential, commercial, retail, hospitality, and social infrastructure projects. The company also leases commercial properties; and owns and operates a hotel. In addition, it engages in the sale of rooms, food and beverages, and allied services related to hotel operations, as well as in the provision of property management services. Oberoi Realty Limited was incorporated in 1998 and is headquartered in Mumbai, India.