Oberoi Realty shares soar to record high; can you expect momentum to continue?

Property developer Oberoi Realty's shares scaled a record high on Wednesday, continuing to rise for a fourth straight session on Dalal Street. The realty stock gained by as much as Rs 13.3, or 1.2 per cent, to touch an unprecedented Rs 1,160.3 apiece in intraday trade on BSE.

The sustained buying interest in Oberoi Realty shares comes ahead of the onset of the festive season in the country, which typically sees consumers lining up their big purchases.  

According to Zee Business research, top property developers in the country are estimated to register growth to the tune of 15-20 per cent in sales in the upcoming festive season with a significant rise in inquiries. The analysts expect higher transaction volumes to be concentrated in Bengaluru, Mumbai, and Pune among the Tier 1 cities in the country during this period. 

What analysts make of Oberoi Realty shares

Earlier on Wednesday, Zee Business Analyst Ashish Chaturvedi recommended buying the stock for a price target of Rs 1,200 with a stop loss at Rs 1,130. Chaturvedi's target implies an upside of more than three per cent in the stock from the latest peak. 

Several analysts are positive about the company's upcoming launches in view of the festive season, while others have raised concerns about the impact of higher interest rates on affordability.

Geojit Financial Services downgraded the stock to 'sell' last month from 'hold' with a target of Rs 936 with a conservative approach.

According to analysts at HDFC Securities, which remains constructive on Oberoi Realty with a 'buy' call and a price target of Rs 1,298 per share, the property developer has a strong launch pipeline for the current financial year. Its target suggests an upside of more than 13 per cent in the stock from Tuesday's close.

How Oberoi Realty began the new financial year

Oberoi Realty kicked off the financial year on a steady note as its quarterly numbers largely met analysts' estimates. The company reported a consolidated net profit of Rs 321.6 crore for the quarter ended June 30, marking a fall of 20.2 per cent compared with the corresponding period a year ago, according to a regulatory filing. 

Its revenue came in at Rs 910 crore for the first quarter of the financial year 2023-24, as against vs Rs 913.1 crore a year ago, and margin stood at 52.1 per cent. 

According to Zee Business research, the property developer's quarterly net profit was estimated at Rs 315.7 crore, and margin at 43.9 per cent. 

Oberoi Realty shares: Past performance

Oberoi Realty shares have gained about one-third of their value so far in 2023, outperforming a 7.4 rise in the headline Nifty index and in line with a 33.4 per cent jump in the Nifty Realty gauge.

As of Tuesday, September 5, the real estate stock had gained 10.5 per cent in the past year, as against a 10.8 per cent gain in the Nifty and a 22 per cent rally in the realty index. 

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