On Tuesday, Kotak Securities adjusted its price target for Oberoi Realty Ltd (OBER:IN) shares, increasing it to INR1,825.00 from the previous INR1,550.00, while continuing to recommend a Reduce rating on the stock.
The adjustment follows Oberoi Realty’s reported growth in its second quarter fiscal year 2025 pre-sales, which reached Rs14.4 billion, marking a 49% increase year-over-year and a 35% rise quarter-over-quarter. This performance was particularly driven by strong sales at the 360 West and Goregaon projects.
The company’s improved pre-sales were complemented by higher occupancy rates in its commercial properties, with Commerz reaching 84% and the newly opened Commerz III achieving 65%. Additionally, Oberoi Realty’s hospitality segment reported healthy Average Room Rates (ARRs), which saw an 8% year-over-year increase.
The launch of Oberoi’s much-anticipated Pokhran Road project during the third quarter of fiscal year 2025 was also highlighted as a significant development. The project has already generated pre-sales of Rs13.5 billion, with half of the inventory launched being sold.
Kotak Securities has revised its forecast for Oberoi Realty’s fiscal year 2025 pre-sales upward to Rs67 billion, up from Rs38.5 billion year-to-date. The firm cites the improving business metrics in annuity and hotel operations, along with the launch of the new Thane project, as key factors supporting the positive outlook. The revised fair value (FV) of Rs1,825 takes into account the inclusion of new projects in Bandra and South Mumbai.
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