Buy Oberoi Realty: target of Rs 2151: ICICI Securities

Moneycontrol • 10 days ago

Original source

Key Investment Pillars

  • Oberoi Realty's successful launch of 360 North, Gurugram, has opened up growth opportunities in the NCR market, with sales bookings of ~INR 80bn.
  • The company is on track to clock INR 100bn+ in annual sales bookings in FY27/28, driven by new launches and monetization of ready and near-completion inventories.
  • Annuity and hotel EBITDA are expected to drive a fresh leg of capex, with rental EBITDA growing at a 26% CAGR over FY25-28E and hotel EBITDA growing at a 20% CAGR over FY25-28E.
  • The company's strong net cash position of INR 5bn as of Mar'27E will support its expansion plans.

Thesis Validation Checklist

  • Investors should watch for the company's ability to maintain strong sales bookings momentum, driven by new launches and monetization of existing inventories.
  • Annuity and hotel EBITDA growth will be key drivers of the company's expansion plans, and investors should monitor rental and hotel occupancy rates, as well as average room rates.
  • The company's net cash position and ability to manage its debt will be crucial in supporting its growth plans.
  • A slowdown in the MMR and NCR residential markets and a fall in annuity rentals and occupancies are key risks to the investment thesis.