Stock Of The Day: Oberoi Realty Shares Test Key 200-DMA After 20% Fall In 2025

Shares of Oberoi Realty Ltd. started the new year on a sour note as the stock plunged by 20% in 15 sessions this year. The outlook for the realty major worsened after the third quarter sales missed Street expectations.

From its life-high on Dec. 31, the stock has fallen by nearly 21% following over 60% rally in 2024. Including today's session, the scrip has fallen in 11 out of the 15 trading days this year.

The stock currently finds support near the crucial 200-day moving average at the Rs 1,855 level. A close below this mark could send the stock further down, indicating a long-term negative downtrend. The next support for the stock lies near the Rs 1,700 level.

The scrip saw its momentum switch on the downside with an engulfing candle on Dec. 30 last year, after hitting resistance at the life-high level. The immediate resistance for the scrip will be near the psychological mark of Rs 2,000.

The stock fell as much as 7.7% to Rs 1,847 per share on Tuesday, compared to the 0.93% fall in Nifty 50. The relative strength index was at 29.

Eleven out of the 37 analysts tracking the company have a 'buy' rating on the stock, 12 suggest a 'hold' and four have a 'sell', according to Bloomberg data. The average of the 12-month analysts' price target implies a potential upside of 11.5%.

The consolidated net profit of Oberoi Realty jumped 72% year-on-year in the third quarter of the current financial year. The real estate player's profit rose to Rs 618.4 crore in the quarter ended December, according to an exchange filing on Monday.

The company's revenue rose 34% to Rs 1,411 crore as compared to Rs 1,053.6 crore in the corresponding quarter of the previous fiscal. The consensus estimate of analysts tracked by Bloomberg stood at Rs 1,621 crore.

Axis Capital

• Maintain a 'Reduce' rating with a target price of Rs 1,805, implying a potential downside of 10%.

• Sales bookings up 144% YoY and 33% QoQ at Rs 1,920 crore in Q3.

• Missed pre-sales expectations of around Rs 3,000 crore, with a drop in velocity of ongoing projects.

• Bookings at Three Sixty West dipped to a four-quarter low of Rs 150 crore.

UBS

• Maintain 'Neutral' rating with a target price of Rs 2,230, implying an upside of 11.4%.

• Q3FY25 pre-sales driven by strong response to Pokhran Road.

• Sales at 360 West and Sky City were soft.

• Believe Q4 pre-sales target of Rs 760 crore is reasonable.

Morgan Stanley

• Maintain 'Equal-weight' rating with a target price of Rs 2,060, implying an upside of 2.9%.

• Q3 review shows strong growth but misses expectations.

• Pre-sales for Q3 were 24% below estimates of Rs 2,500 crore.

• Miss due to fewer bookings at 360 West.

Nomura

• Maintain 'Buy' rating with a target price of Rs 2,500, implying an upside of 24.8%.

• Believe Q3 was strong with more positives than negatives.

• Strong pre-sales driven by launch at Oberoi Garden City, Thane.

• Negative side: 360 West was relatively weak QoQ.

• Don't think investors should read much into weaker-than-expected Three Sixty West pre-sales.

• Believe the company will continue pre-sales momentum in FY26.