Oberoi Realty share price rises after Q1 results, outperforms Nifty 50 YTD; should you buy, hold or sell?

Oberoi Realty share price rose a day after the company reported consolidated net profit at Rs 403.08 crore in Q1 FY23, up from Rs 80.63 crore in Q1 FY22.

Oberoi Realty share price rises after Q1 results, outperforms Nifty 50 YTD; should you buy, hold or sell?
Oberoi Realty shares bucked the market and rose to hit an intraday high of Rs 870, up 1.5% from its previous close on NSE.

Oberoi Realty share price rose a day after the company reported consolidated net profit at Rs 403.08 crore in Q1 FY23, up from Rs 80.63 crore in Q1 FY22. The real estate developer’s revenue from operations increased by 221.2% on-year to Rs 913.11 crore during the quarter. Oberoi Realty shares bucked the market and rose to hit an intraday high of Rs 870, up 1.5% from its previous close on NSE. So far this year, the stock has fallen around 3%, outperforming benchmark Nifty 50 which has tumbled more than 7%. Several brokerages maintain a bullish stance on Oberoi realty shares and see up to 28% upside going forward.

Should you buy, sell or hold Oberoi Realty shares?

Motilal Oswal: Buy
Target price: Rs 1,100, Upside: 28%

Analysts at Motilal Oswal maintain a positive outlook on the stock. As launches and deliveries largely remain on track, they keep their pre-sales and revenue estimates unchanged. “While the management is optimistic about launching the recently added projects in FY23E, we have not built them into our estimates yet. However, renewed focus on business development is a positive sign and will continue to provide further growth visibility for OBER,” the said. The brokerage maintains ‘Buy’ rating on the stock with an unchanged SoTP-based target price of Rs 1,100 per share, implying an upside potential of 28%.

Edelweiss: Buy
Target price: Rs 1,047; Upside: 22.3%

According to analysts at Edelweiss Securities, recovery in housing demand is a key positive for Oberoi Realty. Launch of new projects and business development are the key stock catalysts in their view. “We believe upcoming launches and new project additions would determine the stock’s trajectory,” they said. The brokerage maintains a ‘buy’ call on the realty stock with a revised target price of Rs 1,047 per share, down from Rs 1,049 earlier.

ICICI Securities: Buy
Target price: Rs 988; Upside: 15.4%

While exact timing and quantum of launches is awaited, analysts at ICICI Securities expect Oberoi Realty to clock at least Rs 5,800 crore of sales bookings in FY23E and FY24E vs. Rs 3,880 crore in FY22 and Rs 3,430 crore in FY21. Further, with the Borivali mall and Commerz III office set to see rentals commence in FY24E, they expect the realty firm’s rental income to rise to Rs 8,200 crore in FY24E from Rs 2,400 crore in FY22. The brokerage firm maints its ‘Buy’ rating with a revised SoTP based target price of Rs 988 per share, up from Rs 943 earlier, which assumes a 20% premium to NAV. Key risks, according to the analysts, are a decline in demand for residential properties and weakness in office leasing.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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