. OBEROI REALTY: 2QFY23 earnings a mixed bag; growth triggers intact (OBER IN, Mkt Cap USD3.8b, CMP INR858, TP INR1100, 28% Upside, Buy) Oberoi Realty (OBER) clocked a pre-sales of INR11.5b in 2QFY23, up 39% YoY/52% QoQ and was 28% above our estimate. OBER reopened sales at its ultra-luxury project 360 West (Worli), and reported sales of eight units worth INR6b (>50% contribution). Management expects the momentum to continue. Occupancy at Commerz I improved marginally QoQ. Revenue/EBITDA f...
OBEROI REALTY: Site visit: 360-West – To cash in on the limited luxury RTMI supply (OBER IN, Mkt Cap USD4.3b, CMP INR951, TP INR1100, 16% Upside, Buy) We recently visited Oberoi Realty (OBER)’s 360-West, Worli project to understand the unit offerings as well as the sales and pricing strategy post-receipt of its Occupancy Certificate (OC) in Jun’22. Below are the key takeaways: About 200 units on offer of which 69 have been sold as of Jun’22 The project consists of two towers: Tower A and T...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
OBEROI REALTY: Pre-sales on track despite subdued environment (OBER IN, Mkt Cap USD2.7b, CMP INR525, TP INR630, 20% Upside, Buy) Despite the lack of new launches, OBER exhibited good pre-sales momentum, led by sustained sales at existing projects across the micro markets in MMR. On the commercial side, strong leasing at Commerz II and construction progress of ongoing projects provide comfort. We cut our pre-sales estimate for FY20/21 to factor in the delay in Thane and Exquisite III proj...
OBEROI REALTY: Weak operational performance; new launches to drive growth in 2HFY20 (OBER IN, Mkt Cap USD2.6b, CMP INR513, TP INR630, 23% Upside, Buy) Presales volume declines 42% YoY: 2QFY20 sales volumes/value declined 42%/43% YoY to 0.14msf/INR3.2b. Overall collections grew 23% YoY to INR6.9b. Revenue declined 17% YoY to INR4.9b (v/s est. INR5.6b). EBITDA margins contracted 665bp to 43.3% (v/s est. 40.9%). 1HFY20 performance: Sales volume/value declined 28%/39% YoY to 0.38msf/INR7.2b. Re...
OBEROI REALTY: Set to get taller, new launch pipeline robust (OBER IN, Mkt Cap USD2.6b, CMP INR514, TP INR650, 26% Upside, Buy) We interacted with Oberoi Realty’s (OBER) senior management to understand the progress on the execution of its projects, launch pipeline and the ongoing trends in the industry. OBER is set to launch the following two new projects around Diwali this year. Encouragingly, these projects will likely help the company to double its volumes in FY20, in our view. Than...
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 contribu...
Oberoi Realty: Subdued residential performance; rentals remain strong (OBER IN, Mkt Cap USD2.2b, CMP INR440, TP INR560, 27% Upside, Buy) Presales value declines 41% YoY: OBER’s 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 ov...
OBEROI REALTY | Annual Report: Focused on driving volume and value growth (OBER IN, Mkt Cap USD1.9b, CMP INR377, TP INR568, 51% Upside, Buy) We analyzed Oberoi Realty's FY18 Annual Report and key takeaways are: Performance highlights: On a consolidated basis, revenue from operations increased 14% YoY to INR12.7b in FY18 from INR11.1b in FY17, primarily driven by growth from projects (+14% YoY) and rent (+21% YoY) - together these two segments accounted for about 86% of the revenues. Cons...
Oberoi Realty: Revenue and PAT treble; subvention schemes driving sales velocity (OBER IN, Mkt Cap USD2.6b, CMP INR496, TP INR616, 24% Upside, Buy) Sharp rise in volumes; booking value jumps 117% YoY: OBER’s sales volumes surged 193% YoY to 2,86,689sf and sales value jumped 117% YoY to INR6.2b in 1QFY19 on account of increased traction across projects, primarily in Esquire and Eternia (run-rate in SkyCity project maintained). Overall collections jumped 458% YoY to INR5.7b. Revenue grew 24...
Oi Brazil will know how many of its bondholders will be adhering to its debt restructuring plan by the 31 July deadline. As of the time of this report’s publication, the telco estimates that c86% of the bondholders have agreed to the exchange, and Oi expects the transaction to be completed by the end of the month.
Oberoi Realty: Subvention schemes, new launches to drive sales velocity; Plans to launch sub-brand ‘Aspire’ for affordable housing (OBER IN, Mkt Cap USD2.7b, CMP INR472, TP INR627, 33% Upside, Buy) We visited OBER’s key projects. We surmise that the response to subvention schemes is encouraging. Our key takeaways: Exquisite and Esquire (Goregaon) - pick-up after scheme launch Customers' response to the subvention scheme launched in April for Esquire and Exquisite projects (OC received)...
Oberoi Realty: Focus on improving pre-sales velocity via subvention schemes (OBER IN, Mkt Cap USD3.0b, CMP INR571, TP INR654, 15% Upside, Buy) Flattish volumes; booking value lower by 24% YoY: OBER’s sales volumes declined 3% YoY to 131,052sf (est. of 132,500sf) and sales value fell 24% YoY to INR2,633m (est. of INR3,095m) in 4QFY18, primarily due to falling traction in its 360 West project. Collections increased 18% YoY to INR5,466m due to higher collection in its Enigma and Esquire proj...
Oberoi Realty: Strong margin expansion of 400bp (OBER IN, Mkt Cap USD2.8b, CMP INR528, TP INR608, 15% Upside, Buy) Results exceed expectations: OBER’s revenue grew 41% YoY to INR3,562m (est. of INR3,388m), partially due to a favorable base (3QFY17 was impacted by demonetization). OBER recorded revenue growth of 17% QoQ. EBITDA margin expanded 400bp YoY to 54.1% (est. of 51.4%) due to (i) reduction of 260bp in employee expenses (to 4.2% of net sales) and (ii) 100bp decline in operating expens...
​OBEROI REALTY (INITIATING COVERAGE): Island of prosperity; Sharp focus, trusted brand – the key strengths(OBER IN, Mkt Cap USD2.4b, CMP INR452, TP INR580, 28% Upside, Buy)Oberoi Realty (OBER) is a Mumbai-focused premium real estate developer, with presence in the residential, commercial and hospitality segments. The sharp focus on delivery of quality products has helped the company create a strong brand over the past 20 years. Its trusted brand enables its projects to enjoy premium, resulti...
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