Oberoi Realty Share Price Today Tumbles Nearly 7% Even As JPMorgan Hikes Target Price To Rs 2,350
Oberoi Realty share price today dropped as much as 6.8% to Rs 1,731 apiece soon after market opened.
Oberoi Realty Ltd. share price fell for the second session in a row on Wednesday after its third quarter earnings and management commentary failed to draw investor comfort.
The market reaction comes even as company executives nudged analysts to look at full year growth over sequential print during a post-earnings conference call on Tuesday. They said a lot more launches are in the pipeline between July-December period this year.
Notably, analysts at JPMorgan upgraded the stock to 'Overweight' from 'Neutral' and hiked target price to Rs 2,350 from Rs 1,760 earlier.
The investment bank said Oberoi Realty’s margins over the next two years should benefit from luxury pricing, late stage inventory and ramp up of rental business progressively over the next 12 months.
It observed that occupancy increased across office assets and annuity growth will be high over next two years.
The real estate player's profit rose to Rs 618.4 crore in the quarter ended December. 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.
Oberoi Realty’s recent performance has sparked mixed reactions from analysts, with some brokerages expressing caution while others remain optimistic about the company’s outlook. Several brokerages pointed to a slowdown in project velocity and a miss on pre-sales expectations.
Axis Capital maintained a 'Reduce' rating with a target price of Rs 1,805, citing weaker-than-expected bookings of Rs 1,920 crore in Q3, falling short of the Rs 3,000 crore target. Weak bookings for Three Sixty West contributed to the miss.
Similarly, Morgan Stanley kept an 'Equal-weight' rating with a target price of Rs 2,060, noting a 24% pre-sales miss.
UBS maintained a 'Neutral' rating with a target price of Rs 2,230, driven by strong Pokhran Road sales.
However, Nomura remained bullish with a 'Buy' rating on the stock and a target price of Rs 2,500.
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Oberoi Realty Share Price Movement
Oberoi Realty share price today fell as much as 6.8% to Rs 1,731 apiece soon after market open. This compares to a 0.22% advance in the NSE Nifty 50 Index.
It has risen 28% in the last 12 months. Total traded volume so far in the day stood at 4.1 times its 30-day average. The relative strength index was at 26, indicating it is oversold.
Out of 27 analysts tracking the company, 12 maintain a 'buy' rating, 11 recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 2,140 implies an upside of 15%.
