Oberoi Realty: Target Price Raised to Rs 1820 by Prabhudas Lilladher

Oberoi Realty Sees Robust Pre-Sales Growth, Maintains Healthy Momentum

Oberoi Realty Ltd (OBER) has reported a remarkable 96% year-over-year (YoY) growth in pre-sales, accompanied by a 21% YoY increase in collections for the fourth quarter of fiscal year 2026. This significant growth in pre-sales is a testament to the company's successful new launches, rapid inventory absorption, and strong demand across the Mumbai Metropolitan Region (MMR) market.

Over the period from fiscal year 2022 to 2026, Oberoi Realty has demonstrated a healthy growth momentum in pre-sales, with a compound annual growth rate (CAGR) of approximately 9%. This upward trend is expected to continue, with a projected 24% pre-sales CAGR over the fiscal years 2026 to 2028, driven by new launches in key locations such as Gurugram, Thane, Tardeo, and Worli, as well as sustained sales from existing projects.

Furthermore, Oberoi Realty is expected to maintain steady annuity income of Rs13-14 billion, providing strong cash flow visibility. This consistent income stream will support the company's growth plans and enable it to capitalize on emerging opportunities in the market.

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Investment Recommendation

In light of Oberoi Realty's robust growth prospects and steady cash flow visibility, we retain our 'Accumulate' rating and recommend a target price of Rs1,820 per share, derived from a discounted cash flow (DCF) analysis with a sum-of-the-parts (SOTP) approach. This target price implies an 11% upside from current levels, making Oberoi Realty an attractive investment opportunity for long-term investors.