 "Oberoi Realty surges 15% in three days after a strong Q2 result")
Shares of Oberoi Realty have moved higher by 9% to Rs 431 per share on Wednesday, extending its 6% gain in past two days on the BSE, after the company reported a more-than-double consolidated net profit at Rs 2.14 billion in September quarter, on strong revenue growth. The real estate company had reported a profit of Rs 1.04 billion during the same quarter last fiscal.
The company recorded a consolidated revenue of Rs 6.20 billion for Q2FY19, up 101% against Rs 3.08 billion for Q2FY18.
The market analysts expect the liquidity stress in the NBFC sector is likely to benefit developers like Oberoi with a good execution track record.
“Oberoi scores high on operational transparency and disclosures — key differentiators in the sector. The near-complete residential unsold inventory of Rs 35 billion plus along with net cash balance will enable it to invest aggressively in growth. Regulatory headwinds like RERA and liquidity issues at the NBFC level augur well for Oberoi with a strong brand, quality assets and timely execution track record,” analysts at Elara Capital said in result update.
The brokerage firm believes the company has multiple triggers over the next 12 months, such as the launch of Thane and subsequent phases at Borivali & Goregaon projects. Post the recent correction in the stock price, it revised rating to ‘buy’ from ‘accumulate’ with a target price of Rs 550 per share.
“We remain positive on Oberoi due to its strong balance sheet and brand equity, which help it to command premium pricing. We reiterate our Buy rating and derive a SOTP-based target price of Rs 574. Our calculation captures the value of emerging from Oberoi existing development potential,” Motilal Oswal Securities said in result update.
At 1:20 PM; the stock was up 6.5% at Rs 420 on the BSE, as compared to 0.53% rise in the S&P BSE Sensex. A combined 862,150 equity shares changed hands on the counter on the NSE and BSE so far.
The company recorded a consolidated revenue of Rs 6.20 billion for Q2FY19, up 101% against Rs 3.08 billion for Q2FY18.
The market analysts expect the liquidity stress in the NBFC sector is likely to benefit developers like Oberoi with a good execution track record.
“Oberoi scores high on operational transparency and disclosures — key differentiators in the sector. The near-complete residential unsold inventory of Rs 35 billion plus along with net cash balance will enable it to invest aggressively in growth. Regulatory headwinds like RERA and liquidity issues at the NBFC level augur well for Oberoi with a strong brand, quality assets and timely execution track record,” analysts at Elara Capital said in result update.
The brokerage firm believes the company has multiple triggers over the next 12 months, such as the launch of Thane and subsequent phases at Borivali & Goregaon projects. Post the recent correction in the stock price, it revised rating to ‘buy’ from ‘accumulate’ with a target price of Rs 550 per share.
“We remain positive on Oberoi due to its strong balance sheet and brand equity, which help it to command premium pricing. We reiterate our Buy rating and derive a SOTP-based target price of Rs 574. Our calculation captures the value of emerging from Oberoi existing development potential,” Motilal Oswal Securities said in result update.
At 1:20 PM; the stock was up 6.5% at Rs 420 on the BSE, as compared to 0.53% rise in the S&P BSE Sensex. A combined 862,150 equity shares changed hands on the counter on the NSE and BSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%