Oberoi Realty hits all time high; gains 10% in two days; here's why

Oberoi Realty shares advanced 3.9 per cent in trade, scaling a fresh high at Rs 2,341 per share on BSE on strong outlook. The stock rallied for the second consecutive session, rising around 10 per cent in two days.

 

Around 11:45 AM, Oberoi Realty share price was up 3.49 per cent at Rs 2,331.15 per share on BSE. In comparison, the BSE Sensex was down 1.12 per cent at 80,830.28. The market capitalisation of the company stood at Rs 84,761.14 crore. The 52-week high of the stock was at Rs 2,882.752,341 per share and the 52-week low was at Rs 1,268 per share. 

 

 

Oberoi Realty is a leading real estate development company in India, recognized for its high-end residential, commercial, and retail projects. Based in Mumbai, the company has built a strong reputation for delivering luxurious and sustainable developments. Oberoi Realty’s focus is on creating premium spaces that offer both aesthetics and functionality.

 

Axis Securities has initiated coverage on Oberoi Realty with a 'Buy' rating in its report dated December 16, 2024. The brokerage has given a target price of Rs 2,560 per share. Analysts at Axis are upbeat on the company due to its dominant position in Mumbai Metropolitan Region (MMR), robust annuity scale-up, entry into new key markets, and low leverage with strong cashflows. 

 

"We value the company using the DCF method and arrive at a target price of Rs 2,560/share," the report said.

 

Further, it believes Oberoi Realty is a leading player in Mumbai, specialising in developments across residential, retail, hospitality, and social infrastructure segments. It is one of the strongest brands in the MMR. It is anticipated that Oberoi will establish a strong presence in these new markets, achieving over 40 per cent to 50 per cent bookings within the year of launch. The company is also experiencing strong traction for its new Thane launch, with additional launches anticipated from this project. 

 

By FY27E, bookings are projected to exceed Rs 9,000 crore, driven by launches in Thane, South Mumbai, and Delhi NCR. Furthermore, ongoing projects are expected to contribute to these bookings through upcoming new phase launches.

 

In the past one year, Oberoi Realty shares have gained 56 per cent against Sensex's rise of 14 per cent.