Large Cap Realty Stock Okays 2nd Interim Dividend of Rs 2/Share For FY24: Buy?

With a market valuation of Rs 47,377 Cr, Oberoi Realty is a large-cap company in the real estate industry. The stock saw a decline of 6.33% on the BSE on Wednesday after starting the day at Rs 1370.90 a share and rising to an intraday low of Rs 1283.70 in the morning session. Oberoi Realty's poor Q3 earnings and announcement of a Rs 2 per share FY24 dividend prompted the share price to plummet.

Oberoi Realty Dividend

"This is to inform you that the Board of Directors of the Company at their meeting held on January 22, 2024 has declared 2nd interim dividend for FY23-24 at the rate of Rs.2/- (Rupees Two only) per equity share i.e. 20 % of the face value of equity shares of Rs.10/- each. Further, Friday, February 2, 2024 shall be the record date for the purpose of payment of the said interim dividend, and the said interim dividend shall be paid starting from February 13, 2024," said Oberoi Realty in a stock exchange filing.

Oberoi Realty Financials

The company recorded a net profit of Rs 360.2 crore during the quarter ended 31st December 2023 compared to Rs 702.6 crore posted in the year-ago quarter, representing a fall of 49% YoY. It posted a revenue of Rs 1,053.6 crore during the quarter under review compared to Rs 1,629.5 crore in the same quarter of the last fiscal, down by 35.40% YoY. Its EBITDA reached Rs 509.4 crore in Q3FY24 down by 45.8% YoY from Rs 940.4 crore in Q3FY23.

Oberoi Realty Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, OBEROIRLTY, currently trading at 1390 levels, has encountered a corrective phase from its all-time high of 1585 levels. The stock, positioned above its long-term 200 Day Exponential Moving Average (EMA), reveals resilience despite this pullback. Establishing a robust support level at 1355, the stock is poised for potential upward movements.

Following the profit booking phase, OBEROIRLTY faces several resistances. The initial hurdle rests at 1425 levels, proximate to its medium-term 50 Day EMA. A breakthrough past this resistance could trigger short-covering, propelling the stock towards the subsequent resistance levels of 1490-1500, aligned with its 20 Day EMA.

Investors are presented with a strategic buying opportunity at the current levels, employing a stringent stop loss at 1350 for risk mitigation. The risk-reward ratio appears favorable, as the stock holds the potential to ascend towards its all-time high levels of 1585 over an extended period.

For existing investors, implementing a trailing stop loss at 1350 levels is advisable to safeguard gains and navigate the evolving market conditions.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.