Realty share price target

OBER delivered a stellar 3QFY16, with revenue coming 13.5% ahead of estimates. Net profit was subpar and came in 18.9% below expectations. The Esquire project area recognized was at FY11 realization, resulting in project contributing EBIDTA margins of 38% vs. 58% historically for other projects. Excluding Borivali, OBER achieved Rs 2bn of pre-sales vs. Rs 1.1bn during 2QFY16.

Real Estate: 3QFY16E Results Preview

Over the past month, Oberoi Realtys (OBER) share price has corrected over 9%. This, despite the successful launch of the Borivali project (~70%, 0.8mn sqft sold in a month), start of construction in Mulund, and the likely launch of Oasis Worli in 4QFY16E. OBER has defied investor concerns about a weak real estate market with the Borivali launch. We expect a positive surprise in the Worli pre-sales as well.

ORL delivered a muted 2QFY16 financial performance, with revenue coming 7.3% below our estimates. This was mainly because of marginal sales dip in the ready-to-move-in project, Exquisite. ORL expects to sell residual units in Exquisite by 1QFY17E.

Reforms can be accretive' and big bang' the market had perceived the amendments to the 2013 version of the land-acquisition law as big bang. However, the government was unable to muster numbers in the Rajya Sabha; judging the political cost of calling a joint...

Over the YTD Oberoi Realty Ltd. (ORL) share has underperformed Nifty by 8%. This has happened despite pick up in Goregaon sales, strong response to the Mulund launch (presold 20% of the project) and likely Sep-15E Borivali project launch.

Real Estate (1QFY16E Results Preview) : Long road to recovery

Long road to recovery