Weak performance despite the new launch

Company
24 Jan 2024
5 Min read 
  • Oberoi Realty's 3QFY24 results showed weak performance despite a new project launch.
  •  Sales run-rate for Sky City and 360 West moderated, impacting overall sales.
  •  Pre-sales for 9MFY24 were below estimates, with bookings at INR22b, down 12% YoY.
  •  Revenue decreased 35% YoY to INR10.5b, EBITDA decreased 46% YoY, and PAT decreased 49% YoY.
  •  The company's annuity business and hospitality segment showed positive growth.
  •  The company has a pipeline of 18msf across four projects, with the Thane project expected to generate annual bookings of INR5-7b.
  •  The company's financial strength will allow it to focus on business development and potential land acquisitions.
  •  Based on a DCF-based approach, the fair valuation for Oberoi Realty is INR1,350 per share.
  •  The company's weak operational performance and already priced-in growth potential are reasons for a neutral rating on the stock.
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