MOSL: OBEROI REALTY (Buy)-Softness occupies Residential, but new launch pipeline comforting
Oberoi Realty: Softness occupies Residential, but new launch pipeline comforting
(OBER IN, Mkt Cap USD2.8b, CMP INR535, TP INR628, 17% Upside, Buy)
- Presales volume up 11% YoY: Sales volume grew 11% YoY to 0.14msf (our estimate: 0.17msf), while sales value increased 21% YoY to INR3.2b in 4QFY19. Overall collections declined 26% YoY to INR4b. Revenue grew 66% YoY to INR5.7b (our estimate: INR5.4b). EBITDA margin shrank 1,650bp YoY to 36.6% (our estimate: 41.8%), reflecting a higher contribution from Skycity.
- FY19 performance: Sales volumes increased 48% YoY to 0.82msf, while sales value rose 34% YoY to INR17.5b. Revenue grew over 104% to INR25.8b. EBITDA margin contracted by 870bp to 44.7%. PAT increased by over 78%.
- Growth to be driven by new launches this fiscal: OBER is on track to launch the Thane and Goregaon projects in FY20, but is yet to provide clarity on the timeline. It is also likely to launch a project in South Mumbai (0.45msf), while Skycity Phase II – where construction has already begun for three towers – may be rolled out in FY20, subject to absorption in Phase I. Backed by new launches, sales volumes are expected to grow 90% to 1.6msf in FY20.
Oberoi Realty is a real estate development company operating in Mumbai, focused on premium developments. Co.'s main focus is residential projects but they also have a diversified portfolio of projects covering segments of the real estate market, which target the upper end of the respective income or market segment. Co.'s operating investments comprise the Oberoi Mall, Commerz (commercial tower), Oberoi International School (social infrastructure) and The Westin Mumbai Garden City (269- keys five-star hospitality property).
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.