Oberoi Realty soars on strong demand, MSCI inclusion, and luxury focus
Luxury housing boom and robust pre-sales drive Oberoi Realtys growth momentum.
Oberoi Realty is gaining momentum on the back of favourable macros, robust demand, and strategic positioning in the luxury housing segment. Here are the key triggers driving the stock:
- Luxury segment dominance: The company reported that luxury projects contributed 58 per cent to Q2 revenues, strengthening margins and profitability. This focus has helped Oberoi Realty achieve its highest-ever margins and profits in 13 quarters.
- Strong sales bookings: In Q2, sales bookings rose thirty-five per cent quarter-on-quarter and forty-nine per cent year-on-year. Key highlights include gross bookings worth Rs 1,348 crore at Oberoi Garden City, Thane.
- Price growth supporting pre-sales: Average Selling Price (ASP) has shown significant growth of thirty to forty per cent over the past three to four years, supporting robust pre-sales. The management expects this trend to drive future growth.
- New project pipeline: The company plans to launch new projects in Gurugram by September 2025, further expanding its footprint.
MSCI inclusion and upgraded targets
Oberoi Realty was included in MSCI’s November review, a move expected to enhance investor interest. Reflecting optimism, Morgan Stanley has raised its target price for the stock from Rs 1,900 to Rs 2,060, projecting a thirty per cent pre-sales growth forecast for FY25, up from twenty per cent earlier.
With favourable market dynamics and a clear growth strategy, Oberoi Realty is well-positioned for sustained performance, making it a stock to watch in the real estate sector.
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