5 September 2019
Company Update | Sector: Real Estate
Oberoi Realty
BSE SENSEX
36,644
S&P CNX
10,848
CMP: INR514
TP: INR650 (+26% )
Set to get taller, new launch pipeline robust
Buy
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
OBER IN
364
187 / 2.6
642 / 352
-7/7/20
267
32.3
Financials Snapshot (INR b)
INR b
FY19 FY20E
Sales
25.8
24.5
EBITDA
11.6
10.8
NP
8.2
10.6
EPS (INR)
22.5
29.2
EPS Growth (%)
78.1
29.9
BV/Share (INR)
221.0
247.6
P/E (x)
22.9
17.6
P/BV (x)
2.3
2.1
EV/EBITDA (x)
15.5
17.0
EV/Sales (x)
6.9
7.5
RoE (%)
11.6
12.5
RoCE (%)
10.4
7.9
Shareholding pattern (%)
Jun-19 Mar-19
As On
Promoter
67.7
67.7
DII
3.9
4.4
FII
26.1
25.4
Others
2.4
2.5
FII Includes depository receipts
Stock Performance (1-year)
Oberoi Realty
Sensex - Rebased
680
600
520
440
360
FY21E
31.3
15.4
11.7
32.2
10.3
276.5
16.0
1.9
11.9
5.8
12.3
10.1
We interacted with Oberoi Realty’s (OBER) senior management to understand the
progress on the execution of its projects, launch pipeline and the ongoing trends in the
industry.
OBER is set to launch the following two new projects around Diwali this year.
Encouragingly, these projects will likely help the company to double its volumes in
FY20, in our view.
Thane: The company has completed land acquisition at Thane (INR8.9b,
including approval costs for 60 acre land parcel) with development potential
of ~10-12msf. Of this, ~2.5msf is likely to be allocated to the affordable
housing (AFH) category, which will be eligible for tax benefits u/s 80IB
provided it receives the necessary approvals before Sep’19. Management is
confident about obtaining these approvals within the stipulated timeline.
Goregaon: Exquisite III (1.8msf) project is scheduled for roll out by Oct’19.
Companies such as OBER stand to benefit from Thane’s relatively strong appetite
for brands. Notably, this region clocked sales of ~35msf in CY18 compared to
~27msf in Mumbai. Also, Thane offers a unique value proposition and the new
project launches there will likely substantially boost the sales velocity.
OBER is also set to enter the next leg of growth in the leasing segment with the
planned commencement of operations in Borivali (Oct’20) and Worli (Oct’21)
malls, and Commerz III (Mar’21). We expect annuity portfolio CAGR of 47% to
INR14.4b over FY19-23 for OBER once these malls are fully operational.
Against this promising backdrop, we reiterate our Buy rating and derive an SOTP-
based target price of INR650.
Residential biz prospects boosted by strong new launch pipeline
OBER has completed the Thane land acquisition by paying INR8.9b to GSK for a
60-acre land parcel with development potential of 10-12msf. According to
management, 20-25% of the developable area will be allocated for affordable
housing (AFH). To be eligible for the AFH tax benefits, approvals will have to be
received by Sep’19 and management is confident about obtaining the same. The
first phase of the project is scheduled for launch around Diwali this year (end-
Oct) – it will more likely be under AFH with a ticket size of INR12-15m. We
expect good response to the project based on our catchment analysis (detailed
Thane; Pokhran Road analysis in the report).
Also, Exquisite III (Goregaon)
project is likely to be rolled out close to Diwali. We visited this project site and
noted that construction work has already begun on five towers. We expect
Thane and Goregaon launches to substantially boost volumes velocity to
~1.6msf in FY20, double of 0.8msf in the previous year.
Budget 2019 - alignment of the definition for AFH under 80-IBA and GST tax laws: It is
proposed to increase the limit of carpet area from 30 sqm to 60 sqm in metropolitan
regions and from 60 sqm to 90 sqm in non-metropolitan regions. It is also proposed
to provide the limit on cost of the house at INR4.5m in line with the definition in the
GST Acts. This is applicable for projects approved on or after September 1, 2019.
Jun-18
67.7
3.4
26.4
2.5
Chintan Modi – Research Analyst
(Chintan.Modi@Motilaloswal.com); +91 22 6129 1554
Alpesh Thacker – Research Analyst
(Alpesh.Thacker@MotilalOswal.com); +91 22 5036 2561
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.
 Motilal Oswal Financial Services
Oberoi Realty
Strong focus on commercial portfolio with major capex underway
Annuity portfolio revenue increased by a robust 33% to INR3.1b in FY19. Revenue
from retail grew backed by renewals while growth in office portfolio increased due
to higher occupancy in Commerz II. In our view, the company will enter the next leg
of growth in the leasing segment following the planned commencement of
operations in Borivali (Oct’20) and Worli (Oct’21) malls, and Commerz III (Mar’21).
We expect annuity portfolio CAGR of 47% to INR14.4b over FY19-23 for OBER
(commercial lease CAGR of 35% to INR4.2b and retail business CAGR of 62% to
INR10.2b).
Valuation and view
With the Thane deal, OBER will mark its presence in the mid-income housing
segment, where demand has been relatively good because of the rightly sized and
priced units. Moreover, the company will be eligible for income tax benefits under
affordable housing, provided it receives approvals on time. While OBER has limited
experience in lower-ticket-size projects, we believe its strong track record of
completion/timely delivery, brand equity and strong promoter backing will help it to
comfortably execute this project.
This apart, we remain positive on OBER due to its (a) strong balance sheet, (b)
strong brand equity, which helps it to command premium pricing, (c) execution track
record, (d) robust line-up of launches in the residential and annuity segments and
(e) benefits from the ongoing consolidation in the industry. We thus reiterate our
Buy
rating with an SOTP-based target price of INR650/share. Our calculation
captures the value emerging from the company’s existing development potential.
5 September 2019
2
 Motilal Oswal Financial Services
Oberoi Realty
Thane neighborhood analysis: Examining key competitors
We met sales managers/brokers of four key residential projects at Pokhran Road
(Thane) which are likely to be the key competitors of OBER’s Thane project.
These four key residential projects include Tata Serein and Wadhwa Courtyard,
which are exactly opposite the company’s recently acquired land and in the
advanced stages of completion. Raymond Realty TEN X HABITAT and Shapoorji
Northern Lights are the other two newly launched projects in the location.
The key findings of our analysis
(detailed description on page 4):
2BHKs are mostly on offer with a ticket size of INR12m-17m, while pricing in
terms of realization is broadly similar.
Raymond and OBER are the only players possessing large land parcels, creating
the potential for mixed-use development, including social infrastructure.
Oberoi, Tata and Wadhwa projects are ~2km away from the Eastern Express
Highway (EEH), whereas the Raymond and Shapoorji projects are very close to
EEH.
Thane – a unique value proposition (affordable, fully developed ecosystem)
Thane has emerged as a top real estate destination due to the gradual shift in
demand in favor of the region. It has also transformed from an industrial hub to a
commercial and residential hotspot. The region is strategically located close to
Mumbai with easy accessibility (about 30-40km to most central locations in
Mumbai), well-developed infrastructure and relatively low real estate prices. The
presence of some of the largest business parks in this area attracts global
corporates, driving residential demand.
Thane – the largest market in MMR by absorption, offers strong appetite
for brands
Over the last 10 years, Thane has become the largest market (by absorption) in the
MMR. According to industry data, total absorption in Mumbai was ~24msf in CY08
versus ~20msf in Thane. This has changed significantly with Thane clocking ~35msf
in CY18 v/s Mumbai’s ~27msf. Over 2008-18, Thane/Mumbai/Navi Mumbai
contributed 46%/33%/22% of total absorption in MMR.
Thane offers a strong appetite for brands – the Lodha Group has consistently been a
top developer in the Thane market since 2013, contributing 10-12% of total
absorption in four out of the last six years. This also reflects the market’s strong
appetite as the Lodha Group was able to sell 6,457 units (4.41msf) in 2017 alone.
5 September 2019
3
 Motilal Oswal Financial Services
Oberoi Realty
Exhibit 1: Top 30 developers in Thane, ~31% market share
Market size
29%
31%
30%
Top 30 developers share
37%
40%
31%
39
38
Exhibit 2: Thane residential market is ~37msf on an average
Market size (msf)
41
37
35
33
Source: MOFSL, Industry sources
Source: MOFSL, Industry sources
Examining top projects on Pokhran Road; maximum 2BHKs on offer
Wadhwa Courtyard and Tata Serein are the key ongoing projects in the vicinity,
while TEN X HABITAT by Raymond Realty and Shapoorji Northern Lights projects are
the key recently launched projects in the locality.
The ongoing projects are likely to have an upper hand over the recently launched
projects as they currently face less competition.
With the acquisition of Thane land, OBER has also joined the race to acquire a
portion of the lucrative Thane market. About 70% of the inventory in the four
projects (refer exhibit) – Tata Serein, Wadhwa Courtyard, Shapoorji Pallonji
Northern Lights, and Raymond Realty TEN X HABITAT – is 2BHKs with a ticket size of
INR12m-17m which are selling the most in the location. 1BHKs account for 15% of
total inventory and 3BHKs for 14%; the balance 0.5% is 5BHKs or duplex flats.
Exhibit 3: Configuration summary of key projects on Pokhran Road
Configuration
Total units
% contribution
Total 1BHKs
480
15%
Total 2BHKs
2333
70%
Total 3BHKs
466
14%
Duplex/5BHK
15
0.5%
Overall
3294
100%
Note: Comprises Tata Serein, Wadhwa Courtyard, Shapoorji Pallonji Northern Lights, and Raymond RealtyTEN X HABITAT
Source: MahRERA, MOFSL
Exhibit 4: Well-established ecosystem around Pokhran Road, Thane
Hospitals
Jupiter Hospital
Ace Hospital & Healthcare
Param Hospital
Hiranandani Hospital
Bethany Hospital
Life Care Hospital
Jupiter Lifeline Hospital
Horizon Hospital
Education
Holy Cross High School
Billabong High International School
Sulochanadevi Singhania School
Vasant Vihar School
MH High School & Jr. College
Supermarkets
Big Bazaar
D-Mart
Star Bazaar
Reliance Mart
Malls
Viviana Mall
Korum Mall
Source: MOFSL
5 September 2019
4
 Motilal Oswal Financial Services
Oberoi Realty
Ongoing projects
Wadhwa Courtyard
Wadhwa Courtyard is built on 7.5-8acres land. It is a JD project with Narang Realty
and the construction for the project commenced in 2009.
The project has four buildings (a) Courtyard - Florence (~75% complete) (b) Wadhwa
Coutyard – IVY (~80% complete) (c, d) Courtyard – Onyx and Courtyard – Ornella
both of which are ~60-70% complete. The project has a total of 575 units mainly
comprising of 2/3BHKs; out of which 37% are booked and the remaining 63% are
unsold. 2BHKs have been the fastest selling inventory with 43% being sold. The
company has been able to sell 142 2BHKs, 68-3BHKs and 2- 5BHKs. The company is
yet to sell 191 2BHKs, 171 3BHKs and 1 5BHK.
Exhibit 5: Wadhwa Courtyard project in Thane, Pokhran Road
Source: MOFSL
Exhibit 6: Wadhwa Courtyard project(details as of September 5, 2019)
Configuration
Total 2BHKs
Total 3BHKs
Total 5BHKs
Overall (as of September 5, 2019)
Overall (as of March 5, 2019)
Overall (as of Sept 27, 2017)
Total units
333
105
3
441
441
441
of which booked
146
67
2
215
177
65
% sold
44%
28%
67%
37%
40%
15%
% unsold
56%
72%
33%
63%
60%
85%
Source: RERA, MOFSL
5 September 2019
5
 Motilal Oswal Financial Services
Oberoi Realty
Tata Serein
Tata Serein is built on a 7.5-acre land parcel which is owned by the TATA group. The
possession of flats for this project is expected to commence in 2021. Additionally,
one more tower is likely to come up in phase II which will be premium buildings.
There are three buildings: Buildings 1 is at ~75% completion, building 2 at 60% and
building 3 at ~55%. The project comprises 658 units (231 1BHKs, 231 2BHKs, 184
3BHKs and 12 duplex flats). It has been able to sell 32% of the units; the balance 68%
is unsold. Of the sold units, the company has been able to sell 78 3BHKs (which is
the highest of all configurations it has sold), 73 2BHKs, 50 1BHKs and 10 Duplex.
Exhibit 7:
Tata Serein project in Thane, Pokhran Road
Source: MOFSL, Company
5 September 2019
6
 Motilal Oswal Financial Services
Oberoi Realty
Exhibit 8: Tata Serein project
Summary
Total 1BHKs
Total 2BHKs
Total 3BHKs
Duplex
Overall (as of September 5, 2019)
Overall (as of March 5, 2019)
Overall (as of Sept 27, 2017)
Total units
231
231
184
12
658
658
658
of which booked
50
73
78
10
211
178
121
% sold
22%
32%
42%
83%
27%
27%
18%
% unsold
78%
68%
58%
17%
73%
73%
82%
Source: RERA, MOFSL
Raymond Realty TEN X HABITAT
The company launched three towers (42 storied each) on a land parcel of 14.5 acres.
Around five acres are dedicated for amenities with a 25,000+ sq. ft. club house. Five
more towers are likely to be built going forward. Total land parcel is 108 acres,
which currently houses Raymond's office space, BMW race track and Sulochana Devi
Singhania School (considered as one of the best schools in the location). The land
parcel will be developed over a period of time. The launched towers offer only 2BHK
residences with a carpet area range of 515-635sf and ticket size of INR11m-12m for
smaller-size apartments and INR13-15m for larger apartments. According to RERA,
1,126 units have been launched (429 compact 2BHKs and 697 larger 2BHKs).
The project is located on Pokhran road 1 and is next to the highway, which provides
decent connectivity. Also, the pricing is in line with other projects in the vicinity and
the possession is expected to commence in 2023.
Exhibit 9: Raymond Ten X habitat
TEN X HABITAT
2 BHK Compact
2 BHK Large
Total
Total units of which booked
429
697
1126
199
370
569
% sold
46
53
51
% unsold
54
47
49
Source: MOFSL, Company
Shapoorji Pallonji Project Northern Lights
Total land parcel is 10acres with the first phase being executed on 4.8 acres. This will
house one of the tallest towers in Thane with 50+ stories and 101+ amenities. The
project offers 1/2/3BHKs at an all-inclusive price of INR13m-INR15m/INR23m-
INR24m/INR27m-28m. The size of apartment ranges from carpet area of 600-780sf
(2bhk), 1330sf (3BHK) and 1374sf (4BHK). This project was launched in Mar’19. The
location is Pokhran Road 2 and is closer to highway compared the Oberoi project.
Exhibit 10: Shapoorji Pallonji – Northern Lights
Northern Lights
1BHKs
2BHKs
3BHKs
Total
Total units
249
643
43
935
of which booked
173
435
7
615
% sold
69%
68%
16%
66%
% unsold
31%
32%
84%
34%
Source: MOFSL, Company
5 September 2019
7
 Motilal Oswal Financial Services
Oberoi Realty
Exhibit 11: Shapoorji Pallonji project coming up in Thane near Pokhran road
Source: MOFSL, Company
Top developers eyeing a share of the Thane pie
Several developers are coming up with new projects in Thane. Some of the hotspots
are Vartak Nagar, Pokhran 1 and 2, Kolshet Road, Godhbunder Road, Majiwada and
Waghbil.
Pokhran Road is one of the most preferred areas for housing in Thane as Smt.
Sulochanadevi School and DAV Public School, Korum and Viviana Malls, Jupiter,
Bethany and Lifeline Hospitals are all within a 1km radius. Top developers including
Hiranandani Constructions, Wadhwa, Tata, Raymond, Shapoorji Pallonji Group,
Lodha Developers, Runwal Group and Rustomjee are already executing projects
there.
OBER’s land parcel is located at Pokhran Road No. 2 which is adjacent to the Eastern
Express Highway. Interestingly, right opposite OBER’s land parcel is Wadhwa’s
Courtyard project where possession is due in Dec’20. Also, Tata Serein shares the
common wall next door with Wadhwa Courtyard.
5 September 2019
8
 Motilal Oswal Financial Services
Oberoi Realty
Story in charts
Exhibit 12: Expect revenue CAGR of 10% over FY19-21
Revenue from operations (INRb)
104%
Growth (%)
Exhibit 13: Expect booking value CAGR of 36% over FY19-22
Booking value (INRb)
50%
Growth (%)
39%
21%
13.8
FY18
18.2
FY19
27.4
FY20E
38.1
FY21E
46.2
FY22E
14%
-21%
14.2
FY16
11.1
FY17
12.7
FY18
25.8
FY19
28%
-5%
32%
24.5
FY20E
31.3
FY21E
Exhibit 14:
High EBITDA margin backed by premium
pricing
EBITDA (INRm)
47.8%
51.2%
53.4%
44.7%
44.0%
EBITDA Margin (%)
49.3%
Exhibit 15:
Expect PAT CAGR of 20% over FY19-21
Adj PAT (INRm)
78.1%
21.2%
-13.1%
29.9%
10.3%
8,169
FY19
10,611
FY20E
11,703
FY21E
Growth (%)
6,763
FY16
5,698
FY17
6,753
FY18
11,554
FY19
10,796
FY20E
15,438
FY21E
4,356
FY16
3,786
FY17
4,588
FY18
Exhibit 16:
RoE trend
RoE (%)
9%
7%
12%
8%
12%
12%
Exhibit 17:
Low net debt to equity ratio
Net Debt to Equity Ratio
0.14
0.09
0.03
0.05
0.10
0.08
FY16
FY17
FY18
FY19
FY20E
FY21E
FY16
FY17
FY18
FY19
FY20E
FY21E
Exhibit 18: Expect annuity portfolio CAGR of 51% over FY19-23
Annuity Revenue (INRb)
Two new malls to commence
operations - Worli in FY22, Borivali in
FY21; One commercial space Commerz
III to be operational by the end of FY21
20%
2.3
FY18
33%
3.1
FY19
29%
4.8
FY21E
11.4
FY22E
Growth (%)
139%
27%
14.5
FY23E
Source: MOFSL, Company
19%
3.7
FY20E
5 September 2019
9
 Motilal Oswal Financial Services
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.
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest/Profit from JV
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY14
7,985
-23.8
2,897
443
298
3,637
45.6
4,347
54.4
272
4,076
3
571
4,643
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
4,892
1,721
35.2
0
3,171
3,171
2.0
34.4
FY16
14,162
53.5
6,295
571
533
7,398
52.2
6,763
47.8
490
6,273
68
428
6,632
6,632
2,293
34.6
-16
4,356
4,356
37.4
30.8
FY17
11,138
-21.4
4,288
642
511
5,440
48.8
5,698
51.2
495
5,203
56
508
5,654
5,654
1,869
33.0
0
3,786
3,786
-13.1
34.0
FY18
12,654
13.6
4,679
672
551
5,901
46.6
6,753
53.4
491
6,262
69
302
6,495
6,495
1,907
29.4
0
4,588
4,588
21.2
36.3
FY19
25,825
104.1
12,472
734
1,066
14,271
55.3
11,554
44.7
440
11,113
194
788
11,707
11,707
3,607
30.8
-69
8,169
8,169
78.1
31.6
FY20E
24,509
-5.1
11,715
772
1,226
13,713
56.0
10,796
44.0
510
10,286
301
429
10,414
10,414
3,208
30.8
-3,405
10,611
10,611
29.9
43.3
(INR M)
FY21E
31,316
27.8
13,466
1,002
1,410
15,877
50.7
15,438
49.3
530
14,908
303
438
15,043
15,043
4,635
30.8
-1,295
11,703
11,703
10.3
37.4
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
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
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
-1,030
57,116
10,252
482
9,770
0
488
14,511
49,040
33,393
1,122
3,119
11,406
16,692
425
16,238
29
32,348
57,116
FY17
3,395
53,864
57,260
8,687
-997
64,949
10,417
968
9,449
0
1,095
18,243
54,809
37,664
1,058
3,458
12,630
18,648
535
18,076
37
36,161
64,948
FY18
3,396
57,528
60,924
9,445
371
70,739
11,209
1,446
9,763
0
1,126
24,200
67,157
42,467
1,812
1,167
21,711
31,508
1,454
30,033
21
35,649
70,739
FY19
3,636
76,714
80,350
8,361
308
89,019
12,511
1,886
10,625
0
1,251
29,378
70,090
41,655
1,094
4,311
23,030
22,325
2,323
19,974
28
47,765
89,019
FY20E
3,636
86,405
90,041
9,861
308
100,210
13,011
2,397
10,614
0
14,849
16,378
80,235
55,148
2,014
1,014
22,058
21,866
2,232
19,607
27
58,369
100,210
(INR M)
FY21E
3,636
96,882
100,518
10,361
308
111,187
13,511
2,927
10,584
0
24,787
9,378
92,543
61,429
2,574
1,922
26,618
26,105
2,584
23,487
34
66,438
111,187
5 September 2019
10
 Motilal Oswal Financial Services
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)
Leverage Ratio (x)
Net Debt/Equity
FY14
8.6
9.3
120.9
1.9
24.7
60.1
55.3
4.3
21.3
39.2
0.4
-16.7
7.3
7.2
8.8
1.0
0.2
-0.1
FY15
8.7
9.8
127.5
1.9
24.9
58.9
52.3
4.0
19.6
35.2
0.4
-26.8
7.0
6.4
7.0
0.8
0.2
0.1
FY16
12.0
13.3
146.9
2.0
18.8
42.9
38.6
3.5
12.4
26.0
0.4
12.2
8.7
7.7
9.0
1.4
0.2
0.0
FY17
10.4
11.8
157.5
2.0
21.6
49.4
43.7
3.3
16.1
31.5
0.4
2.9
6.8
6.2
8.6
1.1
0.2
0.1
FY18
12.6
14.0
167.6
2.0
17.8
40.7
36.8
3.1
14.4
27.1
0.4
-8.3
7.8
6.8
10.2
1.1
0.2
0.1
FY19
22.5
23.7
221.0
2.0
10.0
22.9
21.7
2.3
6.9
15.5
0.4
-7.0
11.6
10.4
15.6
2.1
0.3
0.1
FY20E
29.2
30.6
247.6
2.2
8.7
17.6
16.8
2.1
7.5
17.0
0.4
-50.1
12.5
7.9
11.7
1.9
0.2
0.1
FY21E
32.2
33.6
276.5
3.0
10.5
16.0
15.3
1.9
5.8
11.9
0.6
-16.2
12.3
10.1
14.4
2.3
0.3
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
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
-2,048
-2,307
3,258
-3,010
-683
-1,607
0
-2,042
182
2,937
3,119
FY17
5,623
495
-319
-1,825
-2,180
1,794
-56
1,738
-763
976
82
-4,071
-4,752
60
3,820
-527
0
0
3,353
339
3,119
3,458
FY18
6,459
491
-129
-2,108
-6,771
-2,059
0
-2,058
-773
-2,831
24
-5,994
-6,743
17
8,306
-996
-818
0
6,510
-2,291
3,458
1,167
FY19
11,707
440
-594
-3,607
-8,972
-1,025
69
-956
-1,427
-2,383
-5,177
788
-5,817
12,000
-1,084
-194
-817
12
9,917
3,144
1,167
4,311
(INR Million)
FY20E
10,414
510
-128
-3,208
-13,901
-6,313
3,405
-2,908
-14,098
-17,006
13,000
429
-669
0
1,500
-301
-920
0
280
-3,297
4,311
1,014
FY21E
15,043
530
-135
-4,635
-7,162
3,642
1,295
4,937
-10,438
-5,502
7,000
438
-3,000
0
500
-303
-1,226
0
-1,029
908
1,014
1,922
5 September 2019
11
 Motilal Oswal Financial Services
Oberoi Realty
NOTES
5 September 2019
12
 Motilal Oswal Financial Services
Oberoi Realty
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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 Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, 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. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - 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), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL 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 and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
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 MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) 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 with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) 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 MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and 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.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
5 September 2019
13
 Motilal Oswal Financial Services
Oberoi Realty
***************************************************************************************
*****************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
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.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
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nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be 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 be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
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regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be 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 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
5 September 2019
14