Oberoi Realty intends to introduce two projects in Thane in the ongoing fiscal year.
According to the brokerage:
‘The real estate company is likely to acquire approximately 50 acres of land in Gurugram and is also engaged in negotiations for purchasing land in Andheri, Mumbai.’
Although Oberoi Realty stock has remained stable over the past month, domestic broking firm Motilal Oswal anticipates a 16% increase due to the upcoming launches scheduled for the current financial year.
Motilal Oswal expects the company to generate bookings worth Rs 5,600 crore in FY24.
Saumil Daru, the Chief Financial Officer of Oberoi Realty, informed Motilal Oswal that Rs 2,600 crore of this total will be derived from the new projects.
The brokerage has maintained a "buy" recommendation for the stock, setting a target price of Rs 1,140.
According to a report by Motilal Oswal released on June 14:
Oberoi Realty intends to commence the initial stage of its prominent project in Thane within the ongoing fiscal year. The project holds a Gross Development Value (GDV) of Rs 6,200 crore, which represents the estimated value of the property upon completion.
Oberoi Realty's plan for the project includes the development of a school, hotel, group housing, and retail destinations. The company expects to monetize the project over a period of 20 years.
Oberoi Realty is anticipated to finalize a transaction involving approximately 50 acres of land in Gurugram. Additionally, the company is currently engaged in discussions for the acquisition of land in Andheri, Mumbai.
However, the completion of the deal might be delayed since the parcel is situated within the redevelopment zone of the Maharashtra Housing and Area Development Association.
The launch of 'Commerz III', a mall located in Borivali, Mumbai, has been postponed by Oberoi Realty from FY24 to HY25. The mall is projected to be operational from FY25 and has the potential to generate an annual rent of Rs 2,500 crore.
During the March quarter of FY23, Oberoi Realty witnessed a substantial 81 percent increase in net profit, amounting to Rs 1,904 crore compared to the same quarter of the previous year.
As of 12:07 pm, the stock was trading at Rs 986 on the National Stock Exchange, marking a 0.2 percent increase from the previous closing price.
