Oberoi Realty Ltd. share price target

ORL is using interest subvention schemes for monetizing unsold inventory of 4.9mn sqft (~6x FY19 sales). New launches in Thane and Goregaon during 3QFY20E shall drive pre-sales recovery. Rentco investment in Malls and Office business will start yielding rental income from FY22E. Despite a tough environment, ORL recorded 47.6% YoY growth in residential pre-sales. Large outlay on Rental business amidst weak residential recovery shall put pressure on the stock price and limit further re-rating. We maintain NEU on ORL. We maintain NEU with a SOTP-based TP of Rs 525/sh post a largely in-line quarter. We have not made any material changes to our FY20/21E estimates.

Sales volumes grow 10.8% YoY to 1.45 lsf in Q4FY19 ORL's sales volumes were flattish QoQ at 1.45 lakh sq ft (lsf) in Q4FY19 on account of delayed purchases following GST rate changes and election environment. Overall, sales volumes grew strongly by 48% YoY to 0.82 msf in FY19. Going ahead, we anticipate ORL's sales volume to grow at CAGR of...

Oberoi Realty (ORL) came out with good set of numbers which were mostly in line with our estimates except minor miss on the topline. Revenue grew 66% YoY to Rs 5735 mn below our estimate of Rs 6040 mn, EBITDA grew 14% YoY to Rs 2097 mn slightly above our estimate of Rs 1940 mn, while PAT stood at Rs 1.6 bn mostly in line with our estimate of Rs 1.5 bn, a growth of 9% YoY. With city-centric operations well spread out across the Mumbai region, ORL has a project portfolio of ~34 msf spread across 24 projects. With a strong brand name and a dominant position in each of its...

Rentals Remain Strong; New Launches Hold Key: Oberoi Realty sales grew by 48% YoY and were down 11% QoQ to Rs. 5.3 bn in-line with our estimates. Sales volume decreased by 3% YoY to 147276 sft. The decrease in revenue was due to subdued sales across all projects baring Borivali.

ICICI Securities Ltd | Retail Equity Research Oberoi Realty's (ORL) sales volumes declined 3.0% YoY to 1.47 lakh sq ft (lsf) (our estimate: 2.53 lsf), clocking sales value of | 241.6 crore Revenues grew strongly by 48.4% YoY to | 528.6 crore but were marginally below our estimate of | 557.2 crore on account of lower revenues from projects (| 393.9 crore vs. | 431.8 crore expected) EBITDA margins declined 1850 bps YoY to 35.6% (our estimate: 50.0%) on account of higher operating cost...

Maintain BUY with a reduced TP of Rs 525/sh. Coming off a fairly impressive 1HFY19, ORL posted disappointing pre-sales in Goregaon and Worli. Despite Sky City continuing its strong >50 units/qtr performance, pre-sales (including JV) dropped to 0.14mn sqft in 3QFY19 (vs 0.24mn sqft QoQ). Revenue/EBIDTA/PAT came 21/38/11% below est.

23 January 2019 OBERs 3QFY19 sales volumes showed a de- growth of 3% YoY to 1,47,276sf, while its sales value reported a de-growth of 41% YoY to INR2.4b. SkyCity reported strong growth of 60% in volumes YoY, while 360 West disappointed with no sales reported during 3QFY19. Overall collections declined 19% YoY to INR3.4b. OBER reported overall revenue of INR5,286m (est. INR5,311m) in 3QFY19, YoY growth of 48.4%, while EBITDA margins contracted 1,850bp to 35.6% (est. Revenues grew over 100% to INR20,090m YoY; EBITDA grew 92% and PAT grew over 100% compared to 9MFY18. Overall rental revenue grew 46% to INR868m in 3QFY19. Rentals at Oberoi Mall grew at a robust 42% to INR242 psf/m in 3QFY19. Rentals remained stable for Commerz at INR140 psf/m in 3QFY19.

ICICI Securities Ltd | Retail Equity Research Oberoi Realty's (ORL) sales volumes jumped 37.6% YoY to 2.39 lakh sq ft (lsf) (our estimate: 1.85 lsf), clocking sales value of | 567.5 crore. Revenues grew robustly by 95.1% YoY to | 592.1 crore (our...

We maintain BUY with a TP of Rs 552/sh. After an impressive 1QFY19, ORL posted strong growth in certain pockets (Borivali /Worli) leading to 0.2mnsqft of sales vs (0.3mnsqft QoQ). Revenue came in at Rs 5.9bn in 2QFY19 (lower by Rs 1.1bn due to IND AS 115). During 2QFY19 Eternia project reached the profit recognition threshold while Enigma is pending. APAT came in at Rs 2.1bn in 2QFY19 (lower by Rs 78.6mn due to IND AS 115).

23 October 2018 OBERs sales volumes grew 38% YoY to 2,38,634 sq. ft. while sales value increased 61% YoY to INR5.7b in 2QFY19. Overall collections jumped over 300% YoY to INR5.6b. We expect OBER to deliver revenue/EBITDA/PAT growth of 62%/52%/44% in 2HFY19. Commerz II is expected to achieve ~97% occupancy over the next two quarters, as against 63% in 2QFY19. The company has maintained the rental agreement rates at Commerce II in a move to retain quality tenants and tie-up sales. Oberoi Mall average rentals, however, increased by 6% from INR220 per sq. per month in 1QFY19 to INR233 in 2QFY19. Separately, Commerz III construction is expected to commence soon. (a) Exquisite phase III and Sky City Tower 5 will be launched as scheduled this year.