Initiating Coverage | 13 December 2017
Sector: Real Estate
Oberoi Realty
Island of prosperity
Chintan Modi - Research Analyst
(Chintan.Modi@motilaloswal.com); +91 22 3982 5422
Darshit Shah - Research Analyst
(Darshit.Shah@motilaloswal.com); +91 22 3010 2378
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Oberoi Realty
Contents: Oberoi Realty
|
Island of prosperity
Summary ................................................................................................... 3
OBER - Mumbai focused premium play ....................................................... 5
In a virtuous cycle of growth backed by cash generation ............................11
RERA-led consolidation – the next big theme.............................................15
Rental portfolio to increase from 1.6msf to 4.2msf ....................................20
OBER to post revenue CAGR of 47% over FY17-20E ....................................23
SWOT Analysis ..........................................................................................25
Valuation and view ...................................................................................26
Bull & Bear case
........................................................................................29
Annexue 1: OBER’s projects in Mumbai .....................................................30
Annexure 2: Mumbai market - Infrastructure push ....................................32
Key risks....................................................................................................34
Management overview .............................................................................35
Financials and valuations...........................................................................36
13 December 2017
2

Oberoi
Realty
Initiating Coverage | Sector:
Realty
Oberoi Realty
BSE Sensex
33,053
S&P CNX
10,193
CMP: INR452
TP: INR580 (+28%)
Buy
Island of prosperity
Sharp focus, trusted brand – the key strengths
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)/ (USD b)
Avg. Val. (INR m)
OBER IN
339.5
529 / 286
-5/13/25
153.5/2.4
134
Financial Snapshot (INR m)
Y/E Mar
FY17 FY18E FY19E
Sales
11.1 24.8 29.8
EBITDA
5.7
12.7 15.4
NP
3.8
8.4
12.3
EPS (INR)
11.2 24.7 36.1
EPS Gr. (%)
-13.1 121.8 46.1
BV/Sh. (INR) 168.6 188.9 218.5
P/E (x)
40.5 18.3 12.5
P/BV (x)
2.7
2.4
2.1
RoE (%)
6.8
13.8 17.7
RoCE (%)
6.1
12.1 12.8
Shareholding Pattern (%)
As on
Sep-17 Jun-17 Sep-16
Promoter
72.5 72.5
72.5
DII
1.2
0.7
0.5
FII
24.7 24.9
24.2
Others
1.6
1.8
2.7
FII Includes depository receipts
Oberoi Realty (OBER) is a Mumbai-focused premium real estate developer, with
presence in the residential, commercial and hospitality segments. The sharp focus
on delivery of quality products has helped the company create a strong brand over
the past 20 years. Its trusted brand enables its projects to enjoy premium,
resulting in superior EBITDA margins of >50%.
Its residential portfolio comprises 19msf of developable area, providing strong
growth and cash flow visibility over the next 10-12 years. The recent foray into
affordable housing completes its bouquet of offerings and should help it enjoy tax
incentives. We expect the company to be a key beneficiary of the likely
consolidation post RERA.
OBER plans to multiply its annuity portfolio from 1.6msf to 4.2msf by launching
two new malls and an office complex on its existing land bank, which is fully paid
for. The expansion will result in leasing income increasing by 4x over the next five
years. It will also provide stability to revenues.
We estimate OBER's FY19 value at INR580/share (par to its NAV). However, we
believe the company can trade at a premium to its FY19 NAV due to its (1) strong
balance sheet, with ample room for leveraging to buy new land and (2) strong
brand equity, which helps it to command premium pricing. We initiate coverage
with a Buy rating, and value OBER at par to its NAV at INR580/share, implying an
upside of 28%.
A distinguished Mumbai-focused play
OBER has ~22msf of premium developable/unsold area in prime locations of
Mumbai/Thane, which is suitable for large-format integrated development. It
typically buys large land parcels of over 25 acres, which are developed in phases
over 10-12 years. Integrated development consisting of residential, social
infrastructure, malls, hotels and offices uplifts the image of the micro market,
creating value for itself. OBER’s superior product quality and timely delivery have
enabled it to create a trusted brand. This helps its projects to command
premium over prevailing rates in the vicinity, resulting in superior EBITDA
margins of >50%. Also, it enjoys >20% bookings within a quarter of project
launch (Exhibit 11).
Oberoi Realty
Island of prosperity
Residential segment – in a virtuous cycle of growth
OBER has a strong residential portfolio of 19msf, which is expected to continue
providing growth and cash flow visibility over the next 10-12 years. Post RERA
implementation, we expect consolidation in the industry, where a quality player
like OBER stands to benefit from its strong operating and financial discipline. Due
to stricter rules under RERA, most land owners with no prior experience of
development will either choose the JV/JD route for development or simply sell
away the land parcel. This will clearly enrich growth prospects for companies like
OBER. Additionally, the company has a catalyst in the form of low debt to equity
of 0.1x. It also plans foray into affordable housing via its recently acquired Thane
land parcel, which, apart from providing tax incentives, completes its bouquets
of offerings in the residential segment.
3
Chintan Modi
+
91 22 3982 5422
Chintan.Modi@motilaloswal.com
Please click here for Video Link
13 December 2017

Oberoi Realty
Stock Performance (1-year)
RERA – consolidation underway
The primary aim of RERA is to bring about transparency, accountability and
enhanced professionalism in the real estate industry to safeguard the interest of
consumers. The three most important factors that can work toward promoting fair
play in real estate transactions are: (i) the 70:30 rule (to ensure non-diversion of
money), (ii) levy of strict penalties in case rules are breached and (iii) easy access to
project-related documents online. We believe RERA will be instrumental in driving
frivolous players out of the market, leading to consolidation. In our view, players like
OBER are well placed to benefit from any consolidation.
Annuity business – portfolio expansion to provide consistent cash flows
OBER plans to expand its annuity portfolio from 1.6msf to 4.2msf by launching two
new malls (Borivali - 0.5msf and Worli - 0.6msf) and one office complex (Commerz III
- 1.7msf) on its existing land bank. Construction at Borivali mall (part of Skycity
project) has already commenced, and construction at Commerz III should
commence in FY19. We expect the construction of all the three properties to
complete by FY21/22. Cash inflows from the existing assets should majorly fund the
construction cost of the planned projects. We expect lease revenue to increase 4x
from INR1.9b in FY17 to INR7.9b over the next five years, which should increase
further once assets reach an optimum level of occupancy. Growing annuity income
will also provide stability to overall revenues.
We value OBER at par to its NAV at INR580
We compute OBER’s FY19E NAV at INR580/share. Our NAV calculation captures
value emerging from OBER’s existing development potential. We initiate coverage
with a Buy rating (upside of 28%). We believe OBER can trade at a premium to its
FY19E NAV due to its (1) strong balance sheet (net-debt-to-equity of 0.1x), with
ample room for leveraging to buy new land and (2) strong brand equity, which helps
it to command premium pricing and enter into JD/JV contracts. Our optimism is also
supported by the superior IRR of its land acquisitions.
NAV Calculation
Residential
Leasing - Offices and Malls
Hospitality
Value of Other assets
Gross Asset Value
Less: Net Debt
Net Asset Value
CMP
Up/down
INR m
119,585
67,495
11,565
6,791
205,435
8,413
197,022
Per Share (INR)
352
199
34
20
605
25
580
452
28%
%
58%
33%
6%
3%
100%
4%
96%
13 December 2017
4

Oberoi Realty
OBER - Mumbai focused premium play
Enjoys strong brand image through integrated development and superior
product quality
OBER has ~22msf of premium developable/unsold area in prime locations of
Mumbai/Thane, suitable for large-format integrated development. It typically buys
large land parcels of over 25 acres, which are developed in phases over 10-12 years.
Integrated development consisting of residential, social infrastructure, malls, hotels
and offices uplifts the image of the micro market, creating value for itself.
Its superior product quality and timely delivery has enabled it to create a trusted
brand. This helps its projects to command premium over prevailing rates in the
vicinity, resulting in superior EBITDA margins of >50%. Also, it enjoys >20% booking
within a quarter of project launch.
OBER is a Mumbai-focused player, with ample know-how of the micro market and
the regulatory environment, which allows it to identify attractive opportunities in
the city. Factors such as rising income levels, a discerning customer base, and
increasing young, upwardly mobile professionals in Mumbai are expected to ensure
substantial demand for OBER’s projects.
Integrated development offers product synergies
Historically, the company has acquired land parcels that are suitable for large-
format development and situated at attractive city-centric locations – in line with
customer preference. This helps OBER to develop large integrated projects with
multiple facilities, including schools, hospitals, malls and hotels. We believe this
strategy allows the company to (1) position its products better, (2) leverage
synergies among different asset classes and command premium pricing and (3)
capture strong RE demand at different price points in the project cycle.
OBER has acquired land parcels in key areas of Mumbai, such as Goregaon, Mulund,
JVLR, Borivali, Worli, and recently, in Thane. The company believes in buying large
land parcels that are favorable for integrated development (malls, residential,
commercial, hotels and social infrastructure). For example, its flagship mixed-use
project – Oberoi Garden City – is being developed on ~83 acres of land in Goregaon
(a western suburb of Mumbai). The company now aims to replicate this success in
Mulund, Borivali and Thane.
Exhibit 1: Landbanks acquired with clear titles from corporates
Location
Goregaon
Mulund
Borivali
Thane
Area (Acres)
83.9
18.8
25.0
60.0
Acquired from
Novartis India Ltd, Ciba Specialty Chemicals (I) Ltd and Society of
the Franciscan Hospitaller Sisters
GlaxoSmithKline Pharmaceuticals Ltd
Tata Steel
GlaxoSmithKline Pharmaceuticals Ltd
Source: Company, MOSL
13 December 2017
5

Oberoi Realty
Exhibit 2: Approach to landbanks: Creating value through integrated development
Product
synergies
Integrated projects
Brand creation
through superior
offerings
Uplifting micro market’s
image and
boosting RE demand
Premium
pricing
Garden City at Goregaon
emerged as a preferred
destination
Destination development
in early phases
Oberoi Mall, Commerz,
Oberoi Woods, Esquire,
Exquisite
Low-cost large
land parcel
Avg. land acquisition cost
in Garden City project
(residential) is INR180psf
Source: Company, MOSL
Exhibit 3: Snapshot of integrated development (Oberoi Garden City – Goregaon)
Source: Company, MOSL
13 December 2017
6

Oberoi Realty
Exhibit 4: Timeline of Goregaon Garden City’s project development post land acquisition
Land acquisition
Goregaon (1998-
2005)
Commerz I
& Westin
Hotels
April-10
Oberoi
Internation
al School
Nov-10
Oberoi
Exquisite &
Commerz II
May-15
Oberoi
Mall
March-08
Oberoi
Woods
May-08
Commerz II
Dec-13
*Exquisite 3 is planned to be launched by 4QFY18 and Commerz II Phase II in FY19
Source: Company, MOSL
The above exhibit clearly depicts timeline of OBER’s integrated development in
Goregaon Garden City which has uplifted the micro-market in the vicinity and hence,
led to higher realization for OBER’s residential projects like Exquisite and Esquire
(refer below exhibit).
Exhibit 5: Exquisite realization rate grew at 10% CAGR
Area booked (msf)
Realization rate psf (INR 000's)
22.7
13.1
15.4
18.2
11.7
24.4
23.9
23.1
15.8
12.2
Exhibit 6: Esquire realization rate grew at 9% CAGR
Area booked (msf)
Realization rate psf (INR 000's)
21.3
17.6
18.2
19.7
0.29
FY11
0.08
FY12
0.14
FY13
0.06
FY14
0.17
FY15
0.12
FY16
0.04
FY17
0.27
FY11
0.44
FY12
0.23
FY13
0.09
FY14
0.08
FY15
0.06
FY16
0.08
FY17
Source: Company, MOSL
Source: Company, MOSL
Exhibit 7: Oberoi Mall occupancy above 90% since FY11
Occupancy %
Rental psf per month (INR)
143
99%
146
99%
158
100%
Exhibit 8: Commerz I occupancy showing increasing trend
Occupancy %
83%
79%
131
Rental psf per month (INR)
88%
88%
86%
83%
141
132
129
129
FY15
FY16
FY17
110
125
127
133
99%
136
94%
FY11
94%
FY12
95%
75%
130
FY13
FY14
FY15
FY16
FY17
FY11
FY12
FY13
FY14
Source: Company, MOSL
Source: Company, MOSL
13 December 2017
7

Oberoi Realty
Superior construction quality helps boost customer confidence
OBER has been outsourcing most of its projects and delegating non-core activities
(such as design and construction) to long-term service providers. Such a strategy
helps to reduce execution risk, ensures business efficiently and maintains
costs/quality. The company’s expertise in adhering to the regulatory norms has
ensured timely approvals, and thus, project delivery. OBER has an internal team of
liaison officers (architects, engineers and legal professionals). It also outsources
some part of regulatory approvals and fully outsources construction contracts to
reputed players like L&T and Samsung C&T.
Exhibit 9: OBER’s strategy to focus on core aspects of business by outsourcing non-core activities
Land
Identification
& Purchase
Regulatory
Approvals
Design &
Architecture
Execution
Sales &
Marketing
Maintenance
In-house execution
Outsourced activities
Source: Company, MOSL
Exhibit 10: OBER outsources to reputed contractors and leading architects
Project Name
Exquisite & Esquire
Priviera
Three Sixty West
Eternia
Sky City
Commerz I, II
Oberoi Mall
Contractor
Larsen & Toubro
Larsen & Toubro
Samsung C&T
Larsen & Toubro
Larsen & Toubro
Larsen & Toubro
Larsen & Toubro
Architect
Shashank Kokil
Guz Architects, Singapore and Shashank Kokil
Kohn Pedersen Fox
Sunil Arora
Sunil Arora
HOK, LA USA
M/s Bentel and Associates from
Johannesburg, South Africa as Design
Architects
Source: Company, MOSL
Strong brand image evident from impressive booking levels
For residential projects, OBER typically follows a pre-sale model, under which it sells
units prior to project completion. Sales are done via its own sales staff on the
project site, channel partners or third-party brokers. Due to its strong brand image,
the company has been able to record strong sales at launch. The chart below shows
that OBER has been consistently selling more than 20% of its inventory within a
quarter of project launch.
Exhibit 11: Sales bookings of >50% (avg) in launch quarter itself (phase wise)
Residential Project
Esquire
Eternia
Enigma
Sky City
Launch
Quarter
Q4FY11
Q4FY15
Q4FY15
Q3FY16
Sales
(msqft)
0.44
0.41
0.28
0.95
Sales
(INRm)
5,163
5,978
4,131
15,672
Launched
Inventory
(msq ft)
1.97
0.6
0.49
1.44
Sales % of
launched
inventory
22%
67%
58%
66%
Source: Company, MOSL
13 December 2017
8

Oberoi Realty
High EBITDA margins backed by premium pricing
Large land parcels, coupled with extended monetization (over 10-15 years) and huge
appreciation in property prices (on account of upliftment of the micro markets over
the years), provide the company with an opportunity to command superior EBITDA
margins. OBER enjoys pricing premium versus peers operating in the same area. The
tables below depict the premium charged by the company compared to
competitors.
Exhibit 12: OBER’s Sky City project commands average premium of 31% v/s other properties in same area
Project Name
Sky City
Ambrosia
Aroha
Rivali Park
Signia High
Developer
Oberoi Realty
Divine space
Kanakia
CCI projects pvt. Ltd.
Sunteck
Project Status
Ongoing
Completed
Completed
Ongoing
Ongoing
Distance from
Sky City
-
0.35 km
1.2 km
1.5 km
1.6 km
Ticket Price
(In crores)
2.3-5
1.7-3
1.7-2
0.9-2
4.5-7
Average Sales Oberoi Premium Oberoi Premium
Price per Sq ft
project wise project wise (%)
22,250
-
-
14,000
8,250
37%
16,750
5,500
25%
12,750
9,500
43%
17,750
4,500
20%
Source: MOSL, Company, Housing.com, 99acres.com
Exhibit 13: OBER’s Exquisite and Esquire projects command average premium of 15% v/s other properties in same area
Project Name
Exquisite
Esquire
Woodlands Apartments
Sea Princess Gundecha
Raheja Ridgewood
Lodha Fiorenza
Developer
Oberoi Realty
Oberoi Realty
Ashish Group and
Dynamix Group
Sea Princess Realty
Raheja Universal Builders
Lodha Developers
Pvt Ltd
Project
Status
Completed
Completed
Completed
Completed
Ongoing
Ongoing
Distance
from OBER
project
-
-
2.5 km
3.7 km
4 km
4.5 km
Average
Ticket Price
Premium
Premium
Sales Price
project wise project wise (%)
(In crores)
per Sq ft
3-9.5
22,250
-
-
3.5-8
21,000
-
-
5.5-8
1.8-3.7
1.5-5
2.5-7.5
17,550
16,750
19,000
22,500
4,700
5,500
3,250
(250)
21%
25%
15%
-1%
Source: MOSL, Company, Housing.com, 99acres.com
Exhibit 14: OBER’s 360 West project commands an average premium of 14% amongst other properties in same area
Project Name
360 West
Omkar 1973
World Crest
Developer
Oberoi Realty
Omkar Developers
Lodha (Trump Tower)
Ticket Price
Project Status Distance from Sky City
(In crores)
Ongoing
Ongoing
Completed
-
850m
3km
42-49
20-75
13-18
Average Sales
Oberoi Premium Oberoi Premium
Price
project wise
project wise (%)
per sq. ft.
45,000
-
-
40,000
5,000
11%
37,500
7,500
17%
Source: MOSL, Company, Housing.com, 99acres.com
Exhibit 15: OBER’s Eternia and Enigma projects command average premium of 7% v/s other properties in same area
Project Name
Developer
Project Status
Ongoing
Ongoing
Ongoing
Ongoing
Ongoing
Ongoing
Distance from Ticket Price Average Sales Price Premium Premium project
Eternia & Enigma (In crores)
per sq. ft.
project wise
wise (%)
-
1.9-2.4
14,500
-
-
-
3-4.5
15,500
-
-
0.75 km
1.5-3.9
13,000
1,500
10%
1.3 km
0.9-2.5
12,250
2,250
16%
2 km
1.1-3.6
16,000
(1,500)
-10%
4 km
1.5 - 2
12,500
2,000
14%
Source: MOSL, Company, Housing.com, 99acres.com
Eternia
Oberoi Realty
Enigma
Oberoi Realty
Montana
Lohitka Properties LLP
Piramal Revanta PRL Developers Pvt Ltd
The Atmosphere
Wadhwa group
Tata Eleve
TATA Housing
13 December 2017
9

Oberoi Realty
Exhibit 16: Residential EBITDA margins backed by premium pricing
EBITDA margin (%)
57%
58%
57%
50%
54%
44%
47%
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
Exhibit 17: OBER sold 4.9msf of residential space in last seven years
Sales area (msf)
Units booked (nos)
790
520
350
337
218
0.68
FY11
0.68
FY12
0.44
FY13
78
0.16
FY14
1.03
FY15
1.31
FY16
225
0.57
FY17
Source: Company, MOSL
Exhibit 18: OBER has 22msf developable/unsold area in pipeline
Project Name
Project Status
Completed
Ongoing
Ongoing
Ongoing
Ongoing
Ongoing
Ongoing
Planned
Planned
Ongoing
Planned
Planned
Area (msf)
0.2
0.9
0.1
2.0
1.2
1.3
2.8
1.9
1.7
0.5
0.3
9.0
21.9
Source: Company, MOSL
Residential
Exquisite
Esquire
Prisma
Three Sixty West
Eternia
Enigma
Sky City
Exquisite III
Commercial
Commerz III
Retail
Borivali – Mall
Glaxo – Mall
Thane Land
Total Developable/ Unsold Area
13 December 2017
10

Oberoi Realty
In a virtuous cycle of growth backed by cash generation
Completes bouquet of offerings through entry into affordable housing
OBER’s residential portfolio includes 19msf of ongoing and planned projects, providing
strong cash flow visibility over the next 10-12 years.
With low net debt, OBER has ample room to acquire large land parcels in the Mumbai
region. It could also look at development through JV/JD model. Scalability should not
be an issue, as OBER outsources construction.
Post RERA, we expect consolidation in the industry where a quality player like OBER
will be a key beneficiary as it has maintained strong operating and financial discipline.
Due to stricter rules under RERA most land owners with no prior experience of
development will either choose JV/JD route or simply sell away the land parcel. This
will clearly amplify growth prospects for OBER.
OBER’s recent acquisition of 60 acres in Thane, wherein it is planning mixed use
development shall mark its entry into the affordable housing segment, which will
allow it tax incentives. Additionally, OBER could be a key beneficiary of consolidation
in the industry, driven by RERA.
Strong CF visibility for nearly 10-12 years from ongoing/planned projects
OBER has nine projects under pipeline, which is a mix of completed, ongoing and
planned projects with 19msf of saleable area, providing revenue visibility for nearly
10-12 years. Over FY18-20, we expect OBER to generate sales volume of 3.9msf. This
should lead to net cash inflow of INR26b (pre-tax) over FY18-20, which would be
sufficient to fund a large land acquisition. Recently, the company acquired a 60-acre
land parcel in Thane for a consideration of INR5.5b from GSK Pharma, which would
potentially add 8-10msf to its portfolio (which shall be executed over a period of
next 10 years). Via the Thane land, it also plans to make an entry into the affordable
housing segment, thereby enjoying exemption of corporate tax.
Exhibit 19: Bookings to grow at 43% CAGR over FY17-20E
Booking value (INRb)
33%
15%
-35%
23.5
FY16
15.2
FY17
17.5
FY18E
27.9
FY19E
44.9
FY20E
1.3
FY16
Growth %
61%
59%
26%
Exhibit 20: Sales area to grow at 46% CAGR over FY17-20E
Sales area (msf)
50%
Growth %
55%
33%
-57%
0.6
FY17
0.8
FY18E
1.3
FY19E
1.8
FY20E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 21: OBER has 22msf developable/unsold area in pipeline
Key Projects
Sky City
Eternia
Enigma
360 West
Esquire
No. of Apartments
2,357
1,057
619
200
882
Revised Possession Year (as per RERA)
Dec-22
Dec-21
Dec-21
Dec-20
Jun-18
Configuration
3 & 4 BHK
3 BHK
3 & 4 BHK
4 &5 BHK
3 & 4 BHK
Ticket Size approx. (INR m)
25 - 35
20 - 30
30 - 50
300 - 900
45 - 70
Source: MahaRERA, Company, MOSL
13 December 2017
11

Oberoi Realty
Passing of full GST benefit to attract customers
Total indirect tax rate applicable pre-GST was 5.5% (4.5% of service tax post
abatement and 1% VAT) and no input credit was available. Under the GST, the rate
is higher at 12% for purchase of under-construction property (i.e. before receiving
occupation certificate or OC). However, input credit will be available. OBER has
implemented a zero-GST scheme for all existing and future customers in Goregaon,
Borivali and Mulund projects. In Worli, it is not able pass on the full benefits,
though. This means that customers will continue paying effectively 5.5%, as per the
pre-GST regime.
Exhibit 22: Pre-GST working (pro forma)
Selling price psf
VAT @ 1%
Service Tax @ 4.5%
Total tax collected @ 5.5%
Material cost
Services (labour charge)
Input Credit
VAT on Material cost
Service tax @ 15% on Services
Total Input available
Net liability on developer
Net liability on developer %
Pre-GST
20,000
200
900
1,100
3,500
1,500
Nil
225
225
875
4.4%
Source: MOSL
Exhibit 23: Post-GST working (pro forma)
Selling price psf
GST @ 12%
Material cost
Services (labour charge)
Input Credit
GST on Material cost @ 28%
GST on Services @ 18%
Total Input available
Net liability on developer
Net liability on developer %
Post-GST
20,000
2,400
3,500
1,500
980
270
1,250
1,150
5.8%
Source: MOSL
Sound balance sheet provides room for further growth
OBER enjoys a strong balance sheet with low net debt. This should allow the
company to buy a large land parcel with debt in future to foster growth. Moreover,
robust cash flow visibility from its ongoing/upcoming projects (we expect OBER to
generate INR26b of net pre-tax cash inflows over FY18-20E) and negligible gross
debt provide the company with a healthy financial position to expand its landbank
via value-accretive acquisitions.
Exhibit 24: Due to low net DE ratio, OBER can leverage its balance sheet for growth
Net Debt to Equity ratio
0.11
0.11
0.05
0.09
0.03
FY16
FY17
FY18E
FY19E
FY20E
Source: Company, MOSL
13 December 2017
12

Oberoi Realty
Expect multiple land parcels to be available under RERA
Under Maha-RERA co-promoter shall include ‘any person or organization under any
agreement with the promoter of a RE project is allotted or entitled to a share of
total revenue generated from sale of apartments or share of the total area
developed in the RE project’.
Hence, under the RERA framework, a joint developer shall now be considered as a
promoter, making it an equal party to default. Penalties under RERA for delivering
projects in timeline are quite stringent and other costs associated with it would
ultimately affect the feasibility of the projects. Thus, many land owners are
expected to sell their land parcels - since there would be a lesser number of bidders,
prices are expected to remain soft. This will provide opportunities for OBER to
acquire large land parcels.
Recently, the company acquired a 60-acre land parcel in Thane for a consideration
of INR5.5b, with total developable area of 8-10msf over 10 years. OBER had
acquired the 25-acre Borivali land parcel in 2015 for INR11.5b, with total
developable area of 4.5msf (including mall of 0.5msf).
We believe judicious deployment of cash will be a key trigger for the stock. Thus,
driven by sales acceleration, we expect OBER to be in a position to generate net
cash flows of INR26b (pre-tax), which shall be reinvested to acquire land.
Post RERA implementation, the industry would see consolidation with business
shifting in favor of organized developers. Compared to other markets, Mumbai will
see faster consolidation, as Maharashtra (via MahaRERA) is operating very
efficiently compared to other states.
Exhibit 25: Net cash flows generated by OBER to act as key catalyst for growth in future
Net cash flows (pretax) (INR b)
As 360 West project shall
be completed hence, no
CO for that project
27.9
20.3
29.5
1.3
FY18E
4.4
FY19E
FY20E
FY21E
FY22E
Source: Company, MOSL
Foray into affordable housing via Thane land, where OBER is planning
mixed use development
Previously, developers used to typically target luxury and ultra-luxury projects.
However, with various incentives offered on affordable housing projects (e.g.
exemption of profits under the Income Tax Act, 1961), developers have also started
looking at affordable housing (it can now be just as profitable as luxury housing – a
large number of small houses built at low cost is beneficial for the financials of the
project).
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Oberoi Realty
Location of the project is important as it ensures faster sales velocity. Typically,
affordable housing projects are located far from the city hubs due to high land cost
in the city. In Mumbai, improving infrastructure (metro rail and coastal roads to
foster connectivity) will ensure that affordable housing projects attract buyers. Low
cost is achieved by not compromising on quality, but ensuing low design cost –
unlike luxury housing, the same design is used in all buildings. Also, as affordable
housing is a volume game, the absolute numbers could be significant.
Exhibit 26: Approximate ticket size of units under affordable housing
Particulars
Carpet area (sf)
Effective saleable area (sf)
Price per sf (INR)
Ticket size (INRm/unit)
Comments
In case of metro cities 330sf area qualifies as affordable housing project
660
however, in case of Thane 660sf is permissible as it doesn’t form part of Metro
1,000
Implied loading factor
10,000 to 12,000
Based on prevailing micro market rates
10 to 12
Source: MOSL
13 December 2017
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Oberoi Realty
RERA-led consolidation – the next big theme
Organized players to see market share gains
The primary aim of RERA is to bring about transparency, accountability and enhanced
professionalism in the real estate industry in order to safeguard the interest of
consumers.
The three most important factors that can work toward promoting fair play in real
estate transactions are: (i) the 70:30 rule (will ensure non-diversion of money), (ii) levy
of strict penalties in case rules are breached and (iii) easy access to project-related
documents online.
We believe RERA will be instrumental in driving the frivolous players out of the
market, and thus, leading to consolidation.
Thus, we believe that players like OBER are well placed to benefit from any
consolidation by virtue of gaining market shares.
Consolidation under RERA - next big theme
Real estate has been a key driver of the Indian economy. However, poor
transparency and dwindling consumer confidence had put the industry under strain
over the last 3-4 years. However, the introduction of the Real Estate (Regulation and
Development) Act, 2016 has pumped in a new lease of life into the sector, in our
view. It should weed out unorganized players from the industry and whip up buyers’
confidence. The primary aim of RERA is to bring about transparency, accountability
and further enhance professionalism in the real estate industry, thereby
safeguarding the interest of consumers. Most importantly, it brings the entire real
estate sector under the purview of the regulator, defining the liabilities and liberties
of a developer and providing an effective grievance redress mechanism to the
buyer. The introduction of RERA is a boon for both developers as well as customers
in a number of ways. It will not only bring in transparency and clarity, but also
ensure better security.
According to a JLL study, there have been only 240 developers across major seven
cities that have been consistent across the three phases of Indian real estate i.e.
2005-2008, 2009-2011 and 2012-2016. This signifies lack of depth in India’s real
estate industry.
We believe RERA will be instrumental in driving the frivolous players out of the
market, and thus, leading to consolidation. The three most important factors that
can work toward promoting fair play in real estate transactions are:
1. The 70:30 Rule (will ensure non-diversion of money)
2. Levy of strict penalties in case rules are breached
3. Easy access to project-related documents online
a. 70:30 Rule to ensure non diversion of money
Many real estate players have thrived on business models, wherein they divert
money collected from customers to other purposes/projects, leading to delays or
non-delivery. As there has been a lack of regulator, the customers typically move to
court for justice, where again due to the lack of infrastructure, justice is delayed.
Thus, RERA has introduced a 70:30 rule to ensure that the money collected is
utilized for the given purpose only.
13 December 2017
15

Oberoi Realty
A separate bank account with a scheduled bank needs to be opened by the
promoter before the registration process.
70% of the amount realized from allottees is to be deposited in this account.
The amount deposited in the separate account can only be used to cover the
land and construction costs of that project.
Further, this amount shall be withdrawn by the promoter in proportion to the
percentage of completion of the project.
A certificate from an architect, engineer and chartered accountant in practice
will be required for withdrawal from the separate account.
Exhibit 27: Illustration explaining using of funds received from customers (30-70 Rule)
Collection Account
Developer collects INR100 from allottee
along with GST of INR12
Operational Account
INR42 will be deposited in this account
i.e. INR30 (30% of INR 100) along with
GST of INR12
Separate Designated Account
INR70 (70% of INR100) will have to be
deposited in this account
This amount can only be used towards
construction and land costs in
proportion to the percentage
completion of the project. A certificate
from an Architect, Engineer and CA is
required for withdrawal
Source: MOSL
The company will also have to get the accounts audited by a chartered accountant
within six months after the end of every financial year. The auditor shall verify that
the amount collected for a project has been utilized for the said project only and
that the withdrawal has been in proportion to the percentage completion of the
project.
Exhibit 28: Illustration explaining amounts allowed to be withdrawn
Particulars
Land Cost
Construction Cost
Total
Amount in Separate
Account (INRm)
Case I: Full amount received can be withdrawn
Inflow (INRm)
10
7
Cost Incurred (INRm)
50
10
60
Amount that cannot be
Withdrawal Limit (INRm)
withdrawn (INRm)
60
Entire amount can be
withdrawn
10
Source: MOSL
16
Estimated Cost (INRm)
100
200
300
Case II: Maximum 20% of project cost i.e., INR60m shall be withdrawn
100
70
60
13 December 2017

Oberoi Realty
Percentage of work completion
Percentage of work completion = 60/300*100 = 20%. Therefore, there will be a
withdrawal limit of “20% of total estimated cost” set with regards to the separate
designated account.
b. Penalties levied in case of breaching of rules
Breaching the delivery deadlines has been a common practice amongst many
developers in India. However, under RERA, delivery deadline is to be disclosed on
the RERA website, which shall be accessible to customers. Breaching delivery
deadline attracts a heavy penalty to the tune of 5% of the project cost.
Exhibit 29: Penalties for non-compliance under RERA
Offence
Penalty
Advertise, market, book, sell, offer for sale etc.
without prior registration of project (Contravention
Up to 10% of the estimated project
of Sec. 3)
Imprisonment up to 3 (three) years, or a fine which may extend up
Continuing violation of Sec. 3
to further 10% or both
Providing any false information on RERA’s website
Up to 5% of the project cost.
Contravention of any other provision of Act or rules
Up to 5% of the estimated project cost
Failure to comply with any of the orders or
Penalty for every day during which such default continues,
directions of the RERA
cumulatively extending up to 5%, of the estimated project cost.
Imprisonment for a term up to 3 years or fine for every day during
Failure to comply with any order of the Appellate
which such default continues, which may cumulatively extend up
Tribunal
to 10% of the estimated project cost, or both
Section
Sec. 59(1)
Sec. 59(2)
Sec. 60
Sec. 61
Sec. 63
Sec. 64
Source: MOSL
c. Transparency through uploading documents on RERA website
Details required to be submitted on the RERA website (snapshots from MahaRERA
website) include:
Exhibit 30: Member name in project
Source: MahaRERA website, MOSL
13 December 2017
17

Oberoi Realty
Exhibit 31: Project details
Source: MahaRERA website, MOSL
Exhibit 32: Development work details
Source: MahaRERA website, MOSL
13 December 2017
18

Oberoi Realty
Exhibit 33: Building details
Source: MahaRERA website, MOSL
Exhibit 34: Uploaded documents can be viewed
Source: MahaRERA website, MOSL
Exhibit 35: Litigation details
Source: MahaRERA website, MOSL
13 December 2017
19

Oberoi Realty
Rental portfolio to increase from 1.6msf to 4.2msf
Pipeline projects to add 2.6msf of leasable assets in OBER’s portfolio
OBER plans to expand its annuity portfolio from 1.6msf to 4.2msf by launching two
new malls (Borivali - 0.5msf and Worli - 0.6msf {OBER’s share 50%}) and one office
complex (Commerz III - 1.7msf) on its existing land bank. It has received approvals for
both these properties and work has already started at the Borivali mall (part of Skycity
project), and should begin at Commerz III in FY19.
We expect the construction of all the three properties to complete by FY21/22. Cash
inflows from existing assets should majorly fund the construction cost of planned
projects.
We expect lease revenue to increase 4x over the next five years, which should
increase further, once assets reach optimum level of occupancy. Growing annuity
income will also provide stability to overall revenues.
Strong track record with high utilization levels
OBER enjoys a strong leasing and profitable hospitality portfolio, including Commerz
I & II (Commercial Space), Oberoi Mall (Retail Property) and The Westin Mumbai
Garden City (Hospitality). In the leasing portfolio, OBER has leased out ~1m sq. ft.
(~94% of total available area) in Commerz I and II. Commerz I is consistently
operating at ~99% utilization over the last five years (property has been operating at
88% utilization level as balance portion is utilized for OBER’s corporate purpose),
while Commerz II (commenced operations in FY15) operates at 44% utilization (as of
2QFY18; up from average 20% utilization in FY17). OBER’s lease tenants in the
commercial properties include companies like O&M, Group M, Samsung, GSK and
RAK Ceramics.
Recently, it concluded a deal with Teva Pharmaceuticals to lease out ~0.1msf.
Furthermore, Samsung India Electronics has leased ~0.11msf space in Oberoi
Commerz II in Goregaon for INR145/sf per month. The lease is for nine years, with
15% rental escalation every three years. Overall, lease revenue from commercial
space is expected to increase by 76% to INR3b in FY20E from INR1.9b in FY17, driven
by incremental leasing in Commerz II phase I. Oberoi Mall (0.6msf leasable area) has
been consistently operating at 99% over the last five years. OBER’s lease tenants in
the mall include iconic brands like Zara, Forever 21, GAP, Lifestyle, Only, Croma,
Crossword and PVR. We believe this could be leveraged by OBER and attract them
to new malls in Worli and Borivali.
Exhibit 36: Lease portfolio breakup (area in msf)
Commerz I
Commerz II Phase I
Oberoi Mall
Exhibit 37: Rental to grow at 20% CAGR FY17-20E (INRb)
Commerz I
Commerz II Phase I
Oberoi Mall
0.6
0.5
0.1
0.3
FY15
0.5
0.1
0.3
FY16
0.6
0.2
0.3
FY17
0.6
0.4
0.3
FY18E
0.6
0.3
FY19E
0.6
0.7
0.3
FY20E
0.96
0.09
0.47
FY16
1.00
0.23
0.48
FY17
1.04
0.54
0.51
FY18E
1.15
0.97
0.53
FY19E
1.23
0.94
0.01
0.47
FY15
1.19
0.56
FY20E
Source: Company, MOSL
13 December 2017
Source: Company, MOSL
20

Oberoi Realty
Exhibit 38: Occupancy level of leasing portfolio over years
Commerz I
94%
94%
95%
Commerz II Phase I
99%
99%
Oberoi Mall
99%
100%
75%
79%
83%
86%
83%
7%
88%
13%
FY16
88%
30%
FY11
FY12
FY13
FY14
FY15
FY17
Source: Company, MOSL
Two malls and one commercial asset in pipeline to strengthen rental
portfolio
OBER plans to increase its annuity portfolio from 1.6msf currently to 4.2msf by
launching two new malls (Borivali - 0.5msf and Worli - 0.3msf {OBER’s share 50%})
and one office complex (Commerz III – 1.6msf). Work has already started at the
Borivali mall (part of SkyCity project), and should begin at Commerz III once it
reaches optimum level of occupancy (currently at 44%). Worli will be an ultra-luxury
mall with development of 0.6msf of which OBER has 50% share. We expect the
construction of all the three properties to complete by FY21/22. Net cash flow from
Commerz I and II will be sufficient to fund the construction cost of Commerz III. The
expansion will result in leasing income increasing by 4x over next 5 years from
INR1.9b currently. It will also aid in providing stability to revenues.
Exhibit 39: Leasable area to increase from 1.6msf to 4.2msf by FY24
Commerz I
Commerz II
Commerz III
Oberoi Mall
0.3
0.5
0.6
0.5
0.6
0.7
0.3
FY21E
1.7
0.7
0.3
FY22E
Borivali - Mall
0.3
0.5
0.6
1.7
0.7
0.3
FY23E
Glaxo - Mall
0.3
0.5
0.6
1.7
0.7
0.3
FY24E
0.6
0.7
0.3
FY18E
0.6
0.7
0.3
FY19E
0.6
0.7
0.3
FY20E
Source: Company, MOSL
Exhibit 40: Lease revenue to increase at 30% CAGR over FY17-24E
Lease Revenue (INR m)
10,451
7,899
3,054
4,053
12,377
1,789
FY16
1,939
2,243
2,686
FY17
FY18E
FY19E
FY20E
FY21E
FY22E
FY23E
FY24E
Source: Company, MOSL
13 December 2017
21

Oberoi Realty
Expanding hotel portfolio
OBER has a profitable hospitality portfolio. It has the Westin Hotel in Goregaon,
which is part of the mixed development in Oberoi Garden City. It is a five-star hotel
with 269 rooms, and is managed by the Westin Group. In FY17, it reported revenue
and EBITDA of INR1.26b and INR345m, respectively. There is also ongoing
construction of the Ritz-Carlton hotel in Worli. In the hospitality portfolio, OBER
leases out the operations of the hotels, but maintains ownership of these
properties. In the Westin, total capacity is 269 keys, while at the Ritz Carlton; total
capacity is expected to be around 221 keys (OBER’s share 50%). The Westin has had
average occupancy of ~85% over the past three years. The Ritz-Carlton hotel is
expected to commence operations by FY19.
Exhibit 41: Westin Hotel, Goregaon
Exhibit 42: Ritz Carlton, Worli
Source: Company, MOSL
Source: Company, MOSL
Exhibit 43: Hotel revenue to increase at 19% CAGR over FY17-24E
Hotel Revenue (INRm)
Ritz Carlton hotel with
221 keys shall be
operational from FY20
3,379
2,734
1,207
3,733
3,919
4,164
1,271
1,257
1,149
FY16
FY17
FY18E
FY19E
FY20E
FY21E
FY22E
FY23E
FY24E
Source: Company, MOSL
13 December 2017
22

Oberoi Realty
OBER to post revenue CAGR of 47% over FY17-20E
Strong balance sheet to foster growth
OBER is expected to post revenue CAGR of ~47% over FY17-20E, mainly driven by its
robust pipeline of residential projects. We expect Sky City, Exquisite III and Eternia
projects to achieve the revenue recognition threshold.
With steady margins, PAT is expected to grow at 56% CAGR over FY17-20E. We expect
RoE increase from 7% in FY17 to 18% in FY20E.
The growing annuity portfolio should ensure consistent cash flow growth for the
company.
OBER to post revenue CAGR of ~47% over FY17-20E
We expect OBER’s revenues to grow from INR11.1b in FY17 to INR35.3b in FY20E,
implying CAGR of ~47%. Growth is likely to be led mainly by revenue from its
residential projects and steady annuity income growth from its commercial, retail
and hotels businesses. From FY18 Sky City and from FY19 Eternia and Exquisite III
will be the primary revenue drivers as they are expected to achieve the revenue
recognition threshold. OBER posts strong EBITDA margins of 51% over FY17-20E as it
enjoys premium pricing for its products.
Exhibit 44: Revenue to grow at 47% CAGR over FY17-20E
Revenue(INRm)
Sky City, Exquisite III &
Eternia to meet
revenue recognition
53%
20%
-21%
14,161
FY16
11,137
FY17
24,849
FY18E
29,797
FY19E
35,272
FY20E
6,763
FY16
5,701
FY17
12,739
FY18E
15,356
FY19E
18,055
FY20E
18%
123%
Growth (%)
Exhibit 45: High EBITDA margins backed by premium pricing
EBITDA (INRm)
51%
51%
EBITDA Margin
52%
51%
48%
Source: Company, MOSL
Source: Company, MOSL
PAT to grow at CAGR of ~56% over FY17-20E
We expect OBER's PAT to grow at ~56% CAGR, from INR3.8b in FY17 to INR14b in
FY20. This will be driven by (1) strong contribution from the residential vertical and
(2) higher rental income with increased occupancy in properties. Historically, OBER
has enjoyed high EBITDA margins due to its presence at attractive locations and
ability to command a premium due to destination-based development. We expect
OBER's EBITDA margins to sustain due to monetization of the later stages of
integrated developments (which offer higher realization) and contribution from its
Worli project. OBER’s ROE is expected to increase to 18% in FY20E from its 7% in
FY17 and ROCE is expected to increase to 14% by FY20E from 6% in FY17.
13 December 2017
23

Oberoi Realty
Exhibit 46: PAT to grow at 56% CAGR over FY17-20E
PAT (INRm)
122%
46%
17%
-13%
4,356
FY16
3,786
FY17
8,396
FY18E
12,271
FY19E
14,372
FY20E
FY16
9%
8%
PAT Growth (%)
Exhibit 47: RoE to double by FY20E
ROCE
12%
ROE
13%
18%
6%
7%
FY17
FY18E
FY19E
FY20E
14%
14%
18%
37%
Source: Company, MOSL
Source: Company, MOSL
Exhibit 48: Huge pipeline projects to generate cash flows
Cash Flow from Operations (INRm)
Exhibit 49:
Net DE ratio to improve
Net Debt to Equity ratio
0.11
0.09
0.05
0.11
0.03
4,531
FY16
1,735
FY17
1,887
FY18E
5,834
FY19E
10,855
FY20E
FY16
FY17
FY18E
FY19E
FY20E
Source: Company, MOSL
Source: Company, MOSL
Annuity portfolio growing at CAGR of ~21% over FY17-20E
OBER's primary focus has historically been on residential development. However,
we expect steady revenue growth from its non-residential projects, led by (i) rich
pipeline of commercial lease (~1.7msf), retail mall (~1.1msf) and hotel (221 keys)
projects in Mumbai, (ii) broad-based recovery in commercial and retail businesses
and (2) new projects becoming operational in the office, retail and hotel verticals.
We estimate the contribution from annuity projects to grow at CAGR of ~21% over
FY17-20E.
OBER has been consistent in operating at 54% EBITDA margin (avg) over FY12-17 as
compared to its peers operating at 24% EBITDA margins (avg) over FY12-17 on
account of strong brand image OBER carried on customers mind.
Exhibit 50: OBER enjoys superior EBITDA margins of 54% (avg) vs peers at 24% (avg)
Particulars
Oberoi Realty Ltd
Sobha Ltd
Brigade Enterprises Ltd
Godrej Properties Ltd
Prestige Estates Projects Ltd
FY12
59
33
23
21
28
FY13
58
29
25
28
30
FY14
54
28
32
24
28
FY15
56
25
29
14
29
FY16
48
23
24
6
19
FY17
51
19
28
16
19
Source: MOSL
13 December 2017
24

Oberoi Realty
SWOT Analysis
Identifying and
consolidating land
banks
Expertise in getting
approvals
Distinct brand image
Positioned as
premium developer
in market
Presence restricted to
Mumbai market
No dedicated in-
house team of
contractors,
engineers &
architects
Consolidation in real
estate
Shift from unorganized
to organized developers
Commercial vacancy is
at all-time low, which
would provide
developers with pricing
power
Delayed projects could
attract huge penalties
Destination-based
developers require
huge landbank and may
face issues in
consolidating land with
clear titles
Regulatory changes like
RERA, dumping ground
issue may impact
critically
13 December 2017
25

Oberoi Realty
Valuation and view
Initiating with Buy
We value OBER at par to its NAV at INR580/share
We estimate OBER’s FY19 NAV at INR580/share, implying an upside of 28%. We
follow an NPV-based NAV approach to value RE companies based on their land
banks, which captures value emerging from their existing development potential
only.
However, we believe OBER can trade at a premium to its FY19 NAV due to its (1)
strong balance sheet with ample room for leveraging to buy new land, and (2)
strong brand equity, which helps it to command premium pricing power.
Exhibit 51: Region-wise contribution to GAV
Goregaon
Borivali
42%
Worli
Mulund
JVLR/Khar
18%
Thane
9%
8%
17%
22%
1%
22%
Exhibit 52: Residential – project-wise contribution
2%
Exquisite
Esquire
Exquisite III
Skycity
Three Sixty West
Eternia
Enigma
Prisma
Priviera
Thane
Source: Company, MOSL
1%
10%
16%
13%
10%
9%
Source: Company, MOSL
Exhibit 53: NAV calculation
NAV Calculation
Residential
Leasing - Offices and Malls
Hospitality
Value of Other assets
Gross Asset Value
Less: Net Debt
Net Asset Value
CMP
Up/ Down
INR m
119,585
67,495
11,565
6,791
205,435
8,413
197,022
Per Share (INR)
%
352
58%
199
33%
34
6%
20
3%
605
100%
25
4%
580
96%
452
28%
Source: Company, MOSL
NAV calculation - assumption
1. Our NAV estimate factors in development plans that will be executed over 10
years.
2. Average 7% CAGR in RE prices across cities and verticals (residential, commercial
and retail).
3. Average 5% CAGR in construction cost for all verticals.
4. Steady-state occupancy rates of ~95% in the commercial and retail segments.
5. Steady-state occupancy rates of ~80% in the hospitality segment.
6. Discount rate of 12% in case of residential and commercial projects has been
assumed. We have assumed a cap rate of 7% in the commercial & retail.
13 December 2017
26

Oberoi Realty
Value unlocking potential due to strong balance sheet:
1.
Strong balance sheet:
OBER has one of the strong balance sheets among RE
companies, with negligible net debt. As of FY17, the company had net debt of
~INR5.2b (net debt to equity of 0.1x) on its balance sheet.
Exhibit 54: Net Debt to Equity Ratio of OBER vs Peers
Particulars
Oberoi Realty Ltd
Sobha Ltd
Brigade Enterprises Ltd
Godrej Properties Ltd
Prestige Estates Projects Ltd
FY15
0.13
0.78
1.16
1.08
0.93
FY16
0.03
0.80
1.66
1.08
1.32
FY17
0.09
0.78
1.31
1.08
0.98
Source: Company, MOSL
2.
Strong cash flows:
Besides, with strong monetization visibility from its ongoing
and upcoming projects, OBER is expected generate healthy free cash flow over
FY18-20. We estimate incremental net cash inflow of INR18.6b over FY18-20E,
after addressing its requirement for construction, operating and tax expenses.
We believe such financial strength offers the company with an opportunity for
value-accretive land acquisitions to drive growth potential beyond the existing land
bank. For instance, its recent acquisition of Thane land for INR5.5b (we assume total
outflow of ~INR11b post other related cost for acquisition) offers NAV of INR57/per
share, as against land acquisition cost of INR32/share. This value-unlocking potential
explains why we expect OBER to trade at a premium to its NAV in future.
Exhibit 55: Thane project IRR calculation
Pro forma area statement
Land Area (acre)
Saleable area (Assumption) (msf)
Assumptions
Avg Realization (INR/sf)*
Avg construction cost (INR/sf)*
Project life cycle
Land cost (INR b)
Fungible FSI cost (INR b)
TDR cost @ INR2.5K/sf (INR b)
Project P&L
Revenue (INR b)
Per sq ft
Construction cost. Incl. (INR b)
Per sq ft
Land cost (INR b)
Per sq ft
Other cost
Per sq ft
EBITDA (INR b)
Per sq ft
Margin (%)
NPV @ 12% WACC (INR b)
NAV (INR b)
NAV/share (INR)
IRR (Pre Tax)
IRR (Post Tax)
60
9.0
19,952
5,955
12 Years
10.0
2.1
8.8
179.3
19,952
63.9
7,110
10.0
1,113
7.2
798
98.2
10,930
55
24.0
19.2
57
25%
20%
Source: Company, MOSL
13 December 2017
27

Oberoi Realty
Exhibit 56: 7 yr 1 yr forward P/E
31
24
17
10
P/E (x)
Min (x)
Avg (x)
+1SD
Exhibit 57: 7 yr 1 yr forward P/B
28.8
23.8
Max (x)
-1SD
2.8
2.2
1.6
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
19.7
15.6
12.4
2.4
2.1
1.8
1.6
1.3
2.1
12.8
1
Source: Company, MOSL
Source: Company, MOSL
Exhibit 58: 7 yr 1 yr forward EV/EBITDA
EV/EBITDA (x)
22
17
12
7
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
19.4
15.1
12.5
9.8
7.9
9.0
Source: Company, MOSL
13 December 2017
28

Oberoi Realty
Bull & Bear case
Bull case
Assuming increase in property price of land on account of flat prices of land
since past 3-4 years and it is expected that it would have a greater jump in price.
We also have assumed that there would be faster absorption of inventories
leading to higher cash flows in initial years to increase the NPV of the project. In
case of residential, we have assumed realization (avg) to grow at 8% vis-à-viz
base case assumption of 5%.
In case of retail malls, we have assumed lower vacancy rate & higher rentals per
month at INR213pm (FY21) and INR410pm (FY22) for Borivali and Worli mall
respectively vis-à-vis our base case rental of INR178pm and INR367pm
respectively. In case of commercials, we have assumed INR186pm (FY22)(avg) as
the rentals for all commercial assets vis-à-vis our base case rental of INR169pm.
Hence, increasing NAV of retail and commercial assets by 13%.
Target price in base case is INR580 however; if the above assumptions turn out
to be true then NAV would stand at INR638 which is 10% above the base case
NAV.
Bear case
Assuming flat property prices which have been carried since few years. We also
have assumed that there would be slower absorption of inventories leading to
lower cash flows in initial years leading to lower NPV of the projects. In case of
residential, we have assumed realization (avg) to grow at 4.5% vis-à-viz base
case assumption of 5%.
In case of retail malls, we have assumed higher vacancy rate & lower rentals per
month at INR160pm (FY21) and INR316pm (FY22) for Borivali and Worli mall
respectively vis-à-vis our base case rental of INR178pm and INR367 pm. In case
of commercials, we have assumed INR160pm (FY22) (avg) as the rentals for all
commercial assets vis-à-vis our base case rental of INR169pm. Hence,
decreasing NAV of retail and commercial assets by 44%.
Target price in base case is INR580 however; if the above assumptions turn out
to be true then NAV would stand at INR375 which is 35% below the base case
NAV.
Exhibit 59: Bull & Bear case valuations
Nav Calculation
Residential
Leasing - Offices and Malls
Hospitality
Value of Other assets
Gross Asset Value
Less: Net Debt
Net Asset Value
CMP
Up/down
INR m
81,895
38,067
11,565
3,054
134,580
7,155
127,425
Bear Case
Per share (INR)
241
112
34
9
396
21
375
452
-17%
% of GAV
61%
28%
9%
2%
100%
6%
Base Case
Per share (INR)
352
199
34
20
605
25
580
452
28%
INR m
123,930
76,395
15,279
10,186
225,791
9,167
216,623
Bull Case
Per share (INR) % of GAV
365
55%
225
34%
45
7%
30
5%
665
100%
27
4%
638
452
41%
Source: Company, MOSL
13 December 2017
29

Oberoi Realty
Annexue 1: OBER’s projects in Mumbai
Thane land parcel acquisition
Recently OBER acquired 60acres Thane land parcel from GSK Pharma for INR5.5b.
We believe the total saleable potential of the land parcel will be 8-9msf. Land parcel
is located on Pokhran Road No. 2 where Tata Housing and Wadhwa have residential
projects in the vicinity of land parcel. Average realization in the region at INR13,000-
15,000psf. Thane land parcel will be company’s project outside Mumbai
municipality. Presence in an untapped micro market will give OBER significant
growth visibility for the medium term.
Three Sixty West, Worli
Oberoi’s Three Sixty West Worli project is being developed in a joint venture with
Sahana Realty (which is named as Oasis Realty). It is an SRA project with OBER’s
share at 25-40%. Sahana Realty will be responsible for relocating the residents of
the slums, while OBER will have to bear the cost of construction of Three Sixty West.
It is classified as an ultra-luxury project, comprising lavish 4 and 5 BHK units (priced
at ~INR45,000psf). In the project as a whole, there are two towers being
constructed. Tower A houses the Ritz-Carlton five star hotel (marking the entry of
the luxury hotel chain into Mumbai) and Tower B is a complete residential tower.
Total residential development is 2.3msf as of now; after receiving height approval, it
will be able to build another 0.75msf. The structure of the building is ready, and
thus, we expect sales to gain traction, going ahead.
(Project Link)
Exhibit 60: OBER’s Three Sixty West project status
Source: Company, MOSL
13 December 2017
30

Oberoi Realty
Skycity, Borivali
Borivali is primarily a residential micro market. It has large presence of small
developers and not too many large or organized players. Oberoi’s SkyCity project
was a point of note, with 66% of inventory sold within a couple of months of launch.
This project land was part of the acquisition of the 25 acre land parcel that Oberoi
purchased from Tata Steel for INR11b in an e-auction. The area was earmarked for
mixed-use development, with the Borivali Oberoi Mall planned to come up here.
(Project Link)
Eternia and Enigma, Mulund
Mulund was one of the biggest beneficiaries of the emergence of the Bandra-Kurla
Complex (BKC), the new age business district in central Mumbai. The area is well
connected by road via the eastern freeway, and there is also a planned metro line
(expected completion 2020), which shall go up to Kasarvadavali near Thane. Unlike
Borivali, which is dominated by smaller, local players, Mulund has a comparatively
higher number of larger or organized developers. Oberoi has a couple of projects
(Eternia and Enigma) offering 3 and 4 BHK units in the schemes in Mulund. These
projects have witnessed a good response to launch, with ~63% of inventory sold
within a quarter of launch. The land was acquired for around INR2.2b from Glaxo-
owned Burroughs Wellcome in 2005. The project was delayed due to litigation in the
Supreme Court, claiming that the land was forest land. However, in 2014, the
Supreme Court ruled in favor of the developer, post which the development
commenced. However, the government demonetized high-value currency notes in
2016, and given that the surrounding areas are predominantly occupied by smaller-
scale, cash-intensive traders, sales volumes were bound to slow down.
(Project Link)
Garden City, Goregaon
Goregaon’s micro market is a blend of residential and commercial projects at a
strategic geographical location near the Western Express Highway. It includes the
Oberoi Garden City, the Nesco IT Park and the Nirlon Knowledge Park, hotels like the
Westin, and towards east the residential areas of Dindoshi, and Film City.
There has been a strong uptick of footfall in the area following the entry of various
developers over 2010-2012. These projects (commenced in the early 2010s) have
now reached an advanced stage of completion, with delivery likely over the next 18
months. OBER has had a strong presence in the area as it is the first organized
developer to enter the micro market, starting with the Oberoi Garden City, the
Oberoi Mall, the Westin Hotel, and also the Esquire (expected to be complete by the
beginning of FY19) and Exquisite residential projects.
(Project Link)
13 December 2017
31

Oberoi Realty
Annexure 2: Mumbai market - Infrastructure push
Mumbai’s exponential social infrastructure growth
Mumbai is extremely dynamic in its real estate pricing. The pricing can vary from
INR3,000 to INR1,00,000 per sq. ft. This significant difference in pricing can primarily
be ascribed to a variety of factors, such as commuting time to employment hubs,
access to education, healthcare, entertainment centers, and location profile.
Commercial properties and working hubs are concentrated in South Mumbai,
whereas the residential areas are mostly in the suburbs, where the housing prices
are more affordable.
In a city like Mumbai, infrastructure can be one key differential factor for growth.
With increasing availability of social infrastructure and other means of
transportation, there will be a higher number of people who shall come to the city in
search of job opportunities. The number of people using the three railway lines
(central, western and harbor) per day on an average is 80 lakh, while around 3.5
lakh use the metro I (from Versova to Ghatkopar).
Previously, the travel from Andheri (western line) to Ghatkopar (central line) had to
be done via Dadar (where both lines meet), which consumed a lot of time. However,
once the metro became operational, the average travel time reduced from 90
minutes to 44 minutes on average. In a similar fashion, future metro plans are
expected to benefit the people living in the suburbs. Some of the projects that are
expected to be launched are:
1.
Colaba-Bandra-SEEPZ metro line:
The MMRDA has proposed a complete
underground metro line from Colaba in the south to SEEPZ in the north. The
project is slated to be completed in 2021. At the moment, the BKC projects and
the middle parts of the city are equally far away from both the central and
western lines. Once this metro lines becomes operational, this belt would
witness increase in demand for residential and commercial projects as it would
get connectivity to both the residential and commercial hubs in the city.
2.
Dahisar to Andheri:
The MMRDA has proposed a second metro line with two
phases: 2A and 2B. 2A shall run from DN Nagar in Andheri (W) to Dahisar (W),
and 2B shall run from Dahisar (E) to Andheri (E), with a plan to extend it up to
Bhayandar in the north and the T2 in the airport in the south. In addition, there
are a total of eight metro lines being proposed for development, with key
beneficiaries being Thane, Kalyan, and other suburb areas from Borivali to
Bhayandar, etc.
3.
Trans Harbor Link:
The Mumbai Airport has a restriction on the total area it can
access. It needed an alternative to manage its daily air traffic: government has
identified an area near the Navha Sheva port in New Mumbai for this. To
connect Mumbai to the new airport, a new trans-harbor link from Sewri in the
south to the Navha Sheva port has been proposed. With this, the time taken to
travel to the central business districts from the suburbs is expected to reduce.
13 December 2017
32

Oberoi Realty
4.
The Revised Draft Development Plan 2034:
With the implementation of the
projects as mentioned above, the Brihan Mumbai Municipal Corporation is also
drafting its new master development plan – the Revised Draft Development Plan
2034 (RDDP2034) – which shall be used to create the blueprint to help property
developers in the city. It has provisions to develop new central business districts
around areas having access to various modes of transportation by providing
additional FSI.
5.
Mumbai is expected to attract investments of more than INR60,000 crore over
the next five years in infrastructure projects. These projects have the capability
to transform transportation in Mumbai. Travelling across the city would become
easier, and there would be an emergence of new hotspots with great
development potential in the real estate areas near these projects.
Exhibit 61: The expected Mumbai Metro network
Exhibit 62: Mumbai’s new impact hubs post new roadways
Source: Company, MOSL
Source: Company, MOSL
13 December 2017
33

Oberoi Realty
Key risks
Operational risk
OBER’s ability to develop projects is dependent on the turnkey contracts that are
agreed upon with contractors. Despite all due diligence, there may be issues outside
the control of the company, such as import restrictions and customs-related, which
can hamper project development. In addition, there may be work stoppages and
labor disputes, which can disrupt operations and lead to a loss of brand credibility, if
previously established guidelines, which now are stated under RERA, are not met.
These operational risks can impact the company adversely.
Focus on singular city operations – Mumbai
Know-how of the local area is the major positive for property developers like OBER.
However, OBER having its portfolio concentrated solely in Mumbai lacks
diversification which leads to risk of being exposed only to Mumbai market. This
could have an impact on OBER’s project monetization and ability to command
premium pricing.
Macroeconomic factors
Any decline in property prices could exert pressure on the real estate market. Also,
there is unpredictability about events such as government policy changes, market
movements and in general demographic preferences, which could cause
considerable damage to players operating in the real estate sector.
13 December 2017
34

Oberoi Realty
Management overview
Mr. Vikas Oberoi, Promoter and Managing Director
Harvard Business School Alumnus, Mr. Oberoi has been on the Board of Directors
since the inception of Oberoi Realty. With over two decades of experience in the
real estate industry, he brings on board his vision, management practices and global
approach to the function, expansion, diversification and management of the
organization. As an integral part of the key management, he manages a portfolio
spanning across residential, office space, retail, hospitality and social infrastructure
projects.
Mr. Saumil Daru, Director Finance, Oberoi Realty Limited
Mr. Daru has been associated with the company since 2002. He is the Director
Finance and has been a member of the board of Oberoi Realty Limited since May
2014. As the Chief Financial Officer of the company he heads Finance, Accounts and
Tax functions at Oberoi Realty Limited. A graduate in Commerce from Mumbai
University, he is also a qualified Chartered Accountant and has completed the
Advanced Management Program from the Harvard Business School. Prior to joining
Oberoi Realty, he was working with Arthur Andersen / Ernst & Young India Private
Limited and has a cumulative work experience of over 20 years in Tax, Accounts and
Finance.
13 December 2017
35

Oberoi Realty
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Operating Cost
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest/Profit from JV
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY13
10,476
27.0
3,715
383
257
4,356
41.6
6,120
58.4
285
5,835
4
999
6,830
0
6,830
1,783
26.1
0
5,048
5,048
9.1
48.2
FY14
7,985
-23.8
2,897
443
298
3,637
45.6
4,347
54.4
272
4,076
3
571
4,643
0
4,643
1,533
33.0
0
3,110
3,110
-38.4
39.0
FY15
9,227
15.6
3,148
527
414
4,089
44.3
5,138
55.7
403
4,735
18
175
4,892
0
4,892
1,721
35.2
0
3,171
3,171
2.0
34.4
FY16
14,161
53.5
6,295
571
533
7,399
52.2
6,763
47.8
490
6,273
68
428
6,632
0
6,632
2,293
34.6
-16
4,356
4,356
37.4
30.8
FY17
11,137
-21.4
4,371
642
424
5,437
48.8
5,701
51.2
495
5,206
56
473
5,623
0
5,623
1,868
33.2
-31
3,786
3,786
-13.1
34.0
FY18E
24,849
123.1
10,905
738
467
12,110
48.7
12,739
51.3
532
12,207
129
447
12,526
0
12,526
4,162
33.2
-33
8,396
8,396
121.8
33.8
FY19E
29,797
19.9
13,116
812
514
14,441
48.5
15,356
51.5
573
14,783
102
447
15,128
0
15,128
5,027
33.2
-2,170
12,271
12,271
46.1
41.2
FY20E
35,272
18.4
15,759
893
565
17,217
48.8
18,055
51.2
587
17,468
82
494
17,880
0
17,880
5,941
33.2
-2,433
14,372
14,372
17.1
40.7
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments (Inv. Property)
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
FY13
3,282
38,339
41,621
0
147
41,769
7,796
929
6,867
2,654
3,848
0
39,522
12,448
522
10,725
15,827
11,122
297
10,035
790
28,401
41,769
FY14
3,282
40,682
43,964
761
220
44,944
7,850
1,192
6,658
2,654
4,337
496
40,725
16,491
862
4,998
18,375
9,926
243
8,895
789
30,799
44,944
FY15
3,282
43,060
46,343
9,016
243
55,601
11,743
1,595
10,148
2,654
218
0
58,180
34,818
828
2,937
19,598
15,599
353
14,405
841
42,582
55,601
FY16
3,393
50,018
53,411
4,734
-1,029
57,116
10,253
482
9,770
0
488
14,511
49,039
33,392
1,122
3,119
11,406
16,692
462
16,187
43
32,347
57,116
FY17
3,395
53,864
57,260
8,686
-997
64,949
10,417
968
9,449
0
1,095
18,243
54,756
37,664
1,058
3,517
12,518
18,596
612
17,946
37
36,161
64,948
FY18E
3,395
60,744
64,140
9,686
-997
72,829
11,812
1,500
10,312
0
2,499
18,243
62,566
44,789
1,702
2,407
13,667
20,792
829
19,879
83
41,774
72,829
FY19E
3,395
70,799
74,194
10,686
-997
83,883
12,112
2,073
10,039
0
7,295
18,243
70,252
51,039
2,041
2,274
14,899
21,947
989
20,858
99
48,306
83,883
FY20E
3,395
82,575
85,970
5,686
-997
90,659
12,412
2,660
9,752
0
11,559
18,243
77,093
55,659
2,416
1,382
17,636
25,987
1,179
24,690
118
51,105
90,659
13 December 2017
36

Oberoi Realty
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Leverage Ratio (x)
Net Debt/Equity
FY13
14.9
15.7
122.6
2.3
15.2
FY14
9.2
10.0
129.5
1.9
24.7
FY15
9.3
10.5
136.5
1.9
24.9
48.4
42.9
3.3
17.3
31.1
0.4
-26.8
7.0
6.4
7.0
0.8
0.2
3,108
33
0.1
FY16
12.8
14.3
157.3
2.0
18.8
35.2
31.7
2.9
11.0
22.9
0.4
12.2
8.7
7.7
9.0
1.4
0.2
1,647
29
0.0
FY17
11.2
12.6
168.6
0.0
0.0
40.5
35.9
2.7
14.2
27.8
0.0
2.9
6.8
6.1
8.6
1.1
0.2
2,529
35
0.1
FY18E
24.7
26.3
188.9
3.7
18.1
18.3
17.2
2.4
6.5
12.6
0.8
-2.7
13.8
12.1
17.8
2.1
0.3
1,350
25
0.1
FY19E
36.1
37.8
218.5
5.4
18.1
12.5
11.9
2.1
5.4
10.5
1.2
2.2
17.7
12.8
18.7
2.5
0.4
1,290
25
0.1
FY20E
42.3
44.1
253.2
6.3
18.1
10.7
10.3
1.8
4.5
8.7
1.4
18.5
17.9
13.6
20.2
2.8
0.4
1,180
25
0.1
0.5
0.7
12.8
12.8
17.7
1.3
0.3
1,043
18
-0.3
0.4
-16.7
7.3
7.2
8.8
1.0
0.2
1,655
39
-0.1
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY13
6,831
285
-821
-1,698
-3,016
1,581
-162
1,419
-1,181
238
0
-1,684
-2,865
0
0
0
-763
0
-763
-2,209
12,934
10,725
FY14
4,644
272
-384
-1,412
-8,100
-4,980
-193
-5,173
-482
-5,655
88
-153
-547
0
761
0
-768
0
-8
-5,727
10,725
4,998
FY15
4,892
403
787
-1,531
-13,840
-9,288
-95
-9,383
293
-9,090
45
49
386
1
8,255
-552
-768
0
6,936
-2,061
4,998
2,937
FY16
6,632
490
332
-2,115
-659
4,680
-149
4,531
-398
4,133
140
-2,049
-2,307
3,258
-3,010
-683
-1,607
0
-2,042
182
2,937
3,119
FY17
5,623
495
344
-1,825
-2,845
1,791
-56
1,735
-763
973
82
-4,012
-4,693
60
3,820
-525
0
0
3,356
398
3,119
3,517
FY18E
12,526
532
-319
-4,162
-6,723
1,854
33
1,887
-2,799
-912
0
447
-2,352
0
1,000
-129
-1,516
0
-645
-1,109
3,517
2,407
(INR Million)
FY19E
15,128
573
-345
-5,027
-6,665
3,664
2,170
5,834
-5,096
737
0
447
-4,649
0
1,000
-102
-2,216
0
-1,318
-134
2,407
2,274
FY20E
17,880
587
-412
-5,941
-3,692
8,422
2,433
10,855
-4,564
6,291
0
494
-4,070
0
-5,000
-82
-2,596
0
-7,677
-892
2,274
1,382
13 December 2017
37

Oberoi Realty
NOTES
13 December 2017
38

REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
Rs

Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
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inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
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MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities
in the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a)
from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities
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Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject
company in the past 12 months.
Oberoi Realty
NOTES
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
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c)
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MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a
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The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly
or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement
Analyst ownership of the stock
Oberoi Realty
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary
trading desk of MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to
subject company for which Research Team have expressed their views.
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pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement
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Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL
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therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
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treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may
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suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
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13 December 2017
39