The fate of Oberoi Realty stock hangs on the upcoming launch

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Perpetually since Oberoi Realty Ltd announced its June quarter (Q1FY23) revenue after-market hours on Friday, shares of the Mumbai-focused company have attained 6% on NSE, despite some setbacks. Pre-sales at ₹761 crores drop 18% consecutively to a four-quarter low. Decreasing inventory of ready projects, seasonality, and elevated stamp duty were liable for the dull sales bookings, analysts announced. There were no project initiates or business improvement deals during the quarter.

So, why are investors in the stock excited? One justification could be that the company earned the much-awaited occupancy certificate (OC) for Three Sixty West, its ultra-luxury project in Worli. The management advised analysts that it anticipates closing important undertakings for this project in the relative term.

There were no big favourable wonders in Oberoi’s Q1 result. Bookings were restrained, but OC for the Worli project has reached a big emotion boost for the stock,” announced an analyst, offering anonymity. In the trial of rivals Macrotech Developers Ltd (Lodha) and DLF Ltd, pre-sales trajectory enhanced once authorizations were collected for their luxury projects The Park and The Camellias, respectively, the analyst pointed out.

Oberoi anticipates a fulfilment of ₹110,000-120,000 per sq ft on the carpet area for this project. This is 10-20% greater than the current average of the projects in a similar locality, said, analysts.

Additional key monitorable for the stock is the project initiates in Thane. The sample apartment for its project along the Pokhran Road in Thane is inclined and the project will be undertaken during the upcoming festive season, the management announced. Oberoi is also targeting tower liftoffs in Borivali (Sky City) and Goregaon (Elysian) in the second half of the year, provided that the inventory in these projects has greatly been exhausted.

Nonetheless, home loan rates are surging and this will boost the total cost of purchasing a property. Thus, the necessity for residential housing needs to be seen closely. Moreover, Kotak Institutional Equities has factored in the uncertainty in the commissioning of commercial and retail assets as well as the monetization of advancement cash flows due to the delayed launch in Thane and sluggish sales in Three Sixty West so far.

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