Motilal Oswal's research report onOberoi Realty
Oberoi Realty’s (OBER) renewed focus on growth and significant project acquisitions position it well to ride the next leg of scale-up. Six new project acquisitions (INR305b GDV; our estimates) in the last 1Y reflect a considerable step-up in business development (BD). We expect sizeable acquisitions in the coming quarters, which should keep the growth engine running. The successful foray into NCR opens a new avenue for growth, while multiple upcoming launches in new micro-markets of MMR should provide diversification and derisk operational performance. We maintain a 43%/27% CAGR in presales/collections, respectively, over FY26-28E. In this growth phase, we see potential for a sharp re-rating of the residential segment’s embedded EV/EBITDA multiple from 9x currently to a five-year average of 17x.
We maintain a 35% premium to residential NAV and upgrade the stock to BUY with an SoTP-based TP of INR2,130. The scope of premium expansion leaves room for a further upside.
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