Oberoi Realty stock jumped 3.74% and made a new all-time high at Rs 1,149.80 today despite the company reporting muted pre-sales of Rs 4.8 billion in the first quarter of the current fiscal. The company registered a subdued presale, down by 37% on-year primarily due to the absence of new launches. Muted performance was driven by an on-year drop in sales velocity across its existing projects. Brokerages offer mixed reviews on the scrip. Oberoi Realty shares have traded flat over the last 5 days, gained 9.30% in the last one month and a whopping 29.11% in the last 6 months.
Should you buy, sell or hold ORL stock?
HDFC Securities: Buy – Target Price: Rs 1,298
“In terms of Business Development (BD), ORL has an ongoing deal in Gurugram, an LOI signed for a redevelopment project in MMR and a few prospective land parcels in the pipeline. Given the expected robust cash flows from ready-to-move-in inventory in the 360W and Mulund projects along with new business development outside MMR, we remain constructive on ORL and maintain BUY, with an increased target price of Rs 1,298/sh (reflective of increased carpet area in Thane project and better-than-expected realisation in the current portfolio).”
ICICI Securities: Add – Target Price: Rs 1,200
“We expect OBER to clock at least INR60bn of sales bookings each in FY24E and FY25E. Further, we expect the company’s rental income to rise to Rs 11.3 billion in FY25E from Rs 2.9 billion in FY23 as Commerz III/Borivali malls commence rentals from H1FY25E. While we retain an unchanged SoTP based target price of Rs 1,210/share based on 1.15x FY24E NAV, we downgrade our Rating to ADD from BUY post 23% rise in stock price in last 3 months. Key risks are decline in demand for residential housing and weak office leasing.”