HDFC Securities Assigns Buy On Midcap Real Estate Sector Stock, Scrip Rallies 2.65%

HDFC Securities has come up with a Buy recommendation on Oberoi Realty Ltd. (ORL) for a target price of Rs 1158 apiece. The brokerage sees 12% potential upside in the share price, considering the given target price.

ORL is a real estate development company, headquartered in Mumbai. The company focused on developments in the residential, office space, retail, hospitality, and social infrastructure verticals. It is a midcap company with a market capitalisation of Rs 37,805.54 Crore.

New launches to drive further rerating

According to HDFC Securities, Oberoi Realty (ORL) is set for a new phase of growth with new project launches planned for the next few years. "After having registered decent presales of INR 51bn (+31% YoY) in FY23, we expect it to clock INR 65bn in presales 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 Mar'24 (INR 5bn annual rental expected at maximum occupancy) and the Borivali mall is expected to start by Jun'24 (INR 3.5bn annual rental expected at maximum occupancy)," the brokerage has said.

It added, "Whilst the leads pipeline is strong, the management bandwidth will incrementally be used for new business development and launches. The gross debt stands at INR 39bn (up from INR 30bn in Dec'22), mainly on account of financing of a unit sale transaction with Oasis Realty. We believe ORL will generate robust cash flow from ready-to-move-in inventory in the 360W and Mulund projects. Besides, new business development outside MMR shall aid further rerating. We remain constructive on ORL and maintain BUY, with an unchanged NAV-based TP of INR 1,158/sh."

Stock Movement

The stock of Oberoi Realty last traded at Rs 1039.75 apiece, up 2.65% from its previous close of Rs 1012.95 apiece. It is trading 4.68% away from its 52-week high of Rs 1088.40 apiece, traded on Sep 15, 2022. Its 52-week low is Rs 763.40 apiece, traded Jul 06, 2022.

The stock jumped 6.24% in the past 1 week. While in the past 3 and 6 months, it jumped 15.92% and 22.15%, respectively. It jumped 32.42% in the past 1 year. In the past 2 years, it jumped 60.69%. In the past 3 and 5 years, it jumped 179.77% and 126.40%, respectively.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.