Motilal Oswal Retains Buy On Midcap Real Estate Stock, Turning Ex-Dividend Next Week

Leading brokerage firm Motilal Oswal retains Buy on Oberoi Realty Ltd. (OBER) with a target price of Rs. 1,140 apiece. The stock is likely to give a decent return of 12% based on the given target price and the current market price. It is a Real estate midcap stock with a Market Valuation of Rs. 37,052.89 crore.

The Board of Directors of the company in a regulatory filing on May 16, 2023, recommended a dividend of Rs. 4/share i.e. 40% of the face value of equity shares for the financial year ended March 31, 2023. The Board also fixes the record date for the dividend. On June 6, 2023, the Board informed the exchange about the Record Date for the purpose of payment of dividend.

Dividend

According to the regulatory filing by the Board of Directors of the company, "recommended a dividend of Rs. 4/- (Rupees four only) per equity share i.e. 40% of the face value of equity share for the financial year ended March 31, 2023. The said dividend, subject to the approval of the members of the Company, shall be paid starting not later than the fifth day from the conclusion of the Annual General Meeting."

Record Date For Purpose of Payment of Dividend

According to the regulatory filing by the Board of Directors of the Company on June 6, 2023, "June 21, 2023 shall be the record date for the purpose of payment of dividend on equity shares for FY2022-23. Accordingly, the said dividend, as recommended by the Board, if declared and approved at the above Annual General Meeting, will be paid to those members whose names appear on the Register of Members at the end of day on June 21, 2023."

Valuation and view: FY24 expected to be an eventful year for launches and business development; reiterate BUY

Motilal Oswal said, "We believe OBER can significantly scale up its residential segment in FY24 as its key projects are finally set for launch. The conclusion of new transactions can help OBER sustain robust sales beyond FY24. Therefore, we see the following re-rating triggers in OBER: a) launch of the Thane project and customer response to the same, b) new project additions, c) healthy traction at 360-West, and d) significant scale-up in rentals."

It added, "We believe strong cash generation will allow the company to look for aggressive business development opportunities, which will provide further growth visibility. We retain BUY on OBER with our SOTP-based TP of INR1,140, implying 16% upside potential."

Stock Overview

The share price of Oberoi Realty last traded at Rs. 1019.05 apiece, up 3.55% from its previous close. Its 52 week high is Rs. 1088.95 apiece, 52 week low is Rs. 725.95 apiece, respectively.

It has given 3.88% positive return in the last 1 week, 8.28% in the last 1 month and 19.34% in the last 3 months, respectively. It gave 29.07% positive return in the last 1 year, 174.53% in the last 3 years, and 100.34% in the last 5 years, respectively.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. 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.