© Reuters.
Indian real estate firm, Oberoi Realty, has seen a significant uptick in its stock price this year, with a surge of 28% noted, considerably outpacing the Sensex’s 4% rise. The company’s consolidated net profit for Q2FY24 increased by 43 percent to ₹456 crore ($61.3 million), which drove the stock to a 52-week high of ₹1,206 ($16.23).
Despite witnessing a 52% increase in total expenses to ₹647 crore ($87.1 million), the company’s income jumped by 75% to ₹1,243 crore ($167.3 million). This was largely driven by robust demand for home ownership and heightened consumer confidence.
An additional boost came from the income of Oberoi Realty’s wholly-owned subsidiary’s property, known as “360 West”, previously accounted as a joint venture contribution. With the absence of competition in the premium real estate segment, the company has several launches planned for H2FY24.
The management of Oberoi Realty expects the strong uptrend in the real estate market to continue, supporting the company’s earnings growth. They believe this will be propelled by festive season retail demand, enduring demand for established brands, spacious apartments and a growing desire for home ownership.
Market analysts from Motilal Oswal and HDFC Securities have given a “Buy” rating for Oberoi Realty. HDFC Securities has set a target price of ₹1,024 ($13.79) for the stock, which was trading at ₹1,117.45 ($15.03) on NSE earlier this week.
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