Oberoi Realty climbs 9%, hits 52-week high

Shares of Oberoi Realty climbed nearly 9 per cent on Thursday’s trade. The company’s consolidated net profit for the March quarter of 2024 increased 64 per cent and announced plans to raise up to ₹4,000 crore through issuance of equity shares and non-convertible debentures.

On the BSE, the stock hit a 52-week high at ₹1,717.

On the NSE, the stock traded higher by 8.72 per cent at ₹1,711.45 as of 2.29 pm. The stock has hit a 52-week high at ₹1,717.90. 

The company’s consolidated net profit for the quarter ended March 2024 was at ₹788.03 crore as against the profit of ₹480.29 crore in the corresponding quarter last year.

• Also read: Oberoi Realty partners with Marriott for developments in Mumbai

The board had approved reappointment of Vikas Oberoi as managing director of the company for a further term of five years with effect from December 4, 2024, to December 3, 2029. 

The board also recommended a final dividend of ₹2 per equity share. 

Brokerage Motilal Oswal expressed that the near-term launch pipeline remains strong and is estimated to report a 41 per cent CAGR in bookings over FY24-26 to ₹7,900 crore.

The analysts added that the completed projects such as Sky City Phase 1, 360-West, and EterniaEnigma have the potential to cumulatively generate ₹1,500 crore of surplus cash annually. This, coupled with the scale-up in rental income, provides enough firepower to capture the business development opportunity.

The brokerage firm has reiterated its neutral rating on the stock and said, “We roll forward our estimates and incorporate contribution from the new Worli project, resulting in an increased target price of ₹1,435.”

Brokerages such as JP Morgan and Citi have also given ‘neutral’ rating. 

Jefferies has maintained ‘hold’ call with a target price of ₹1,548, while CLSA has maintained ‘sell’ rating with a target price of ₹1,260.