ICICI Securities has assigned add call to the large cap Real Estate stock, Oberoi Realty Ltd with a target price of Rs 988 apiece. The company has a market capitalisation of Rs 32,511 crore. Check key takeaways below:
1. Oberoi Realty Ltd Stock Outlook
The current market price of the stock is Rs 894 apiece with 1.82% intraday surge. The stock's 52-week high is Rs 1088 apiece and 52-week low is Rs 726 apiece, respectively.
2. Oberoi Realty Ltd Return
The stock has given returns of 82% in last 5-years, 77% in last 3-years, and nearly 2% in last 1-year. It has declined 8% in last 3-months.
3. Oberoi Realty Ltd Issued Clarity On Proposed Worli Transaction
Oberoi Realty (OBER) has issued a clarification to stock exchanges on 24th Nov'22 w.r.t to its proposed 50% area buyout in its completed super-luxury 360 West, Worli project for a consideration of up to Rs40bn.
While investors have been concerned over a possible rise in the company's debt levels owing to this proposed transaction, the company has sought to allay these concerns and guides that this will be a cash neutral transaction for the company.
4. Background Of Proposed Transaction
On 9th Nov'22, OBER had given a notice to stock exchanges w.r.t. an EGM to be held on 1st Dec'22, for the approval of the proposed acquisition of residential premises in the completed 360 West, Worli project from Oasis Realty for an aggregate consideration of up to Rs40bn. Prima facie, it appeared that OBER's debt levels would rise to fund the acquisition along with adjustments for OBER's existing 32.5% profit share in Oasis Realty.
5. Oberoi Realty Valuation
According to ICICI Securities, "we retain our ADD rating with an unchanged TP of Rs988/share. Key risks are a decline in demand for residential properties and weakness in office leasing."
6. Oberoi Realty About
The company came into existence in 1998 and operates in Real Estate sector. It has developed over 42 projects at strategic locations across the Mumbai skyline aggregating about 11.89 million sq. ft of spaces (group entity including promoter group). With another 48.68 million sq. ft. in the making, it has aggressive plans for upcoming projects in various parts of Mumbai and other regions, according to its official website.
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