Oberoi Realty shares fall 4% as institutional investor likely sells 3.1% stake. Here's what brokerages say
ADVERTISEMENT According to previous reports by CNBC TV-18, the deal was sized at $230 million.
The floor price for the deal was set at Rs 1,753.2 per share, representing a 4% discount to Tuesday's closing price (22 July). The transaction is said to be a clean-out trade, although the identity of the selling investor has not been disclosed.
Nomura has cut its FY26F/FY27F EPS estimates by 7%/4% on revised revenue recognition assumptions. It expects 30% pre-sales CAGR over FY26–FY27F driven by a strong project pipeline, 25% CAGR in annuity and hotel income, and robust cash flows supporting new business development. Projected cumulative pre-sales of Rs 161 billion over two years represent 40% of total supply, comparable to peers. The stock trades at a 53% premium to NAV versus Nomura's 75% estimate and peers' 36–140% range.Oberoi Realty reported pre-sales of Rs 16.4 billion in Q1FY26, marking a 54% year-on-year and 92% quarter-on-quarter increase, primarily driven by the launch of a new tower in the Elysian project at Goregaon. Collections stood at approximately Rs 10 billion, remaining flat YoY but rising 30% sequentially. The company has lined up additional launches for H2FY26E. Lease revenue surged 55% YoY following the operationalisation of the Borivali mall, with occupancy and rental growth in the annuity segment continuing to remain healthy. The pace of upcoming project launches is expected to be a key factor influencing the stock's performance.Motilal Oswal has maintained a 'neutral' rating on the stock and raised the target price to Rs 1,878, up from earlier Rs 1,850.
ADVERTISEMENT The brokerage cited a revenue miss due to lower-than-expected collections, despite stable pre-sales. Planned launches for FY26 include one tower in Borivali, two towers in the Forestville project in Thane, and new projects in Peddar Road and Gurugram. Possible additional FY26 launches are expected in Adarsh Nagar, Worli, and Tardeo. For FY27, the company's pipeline includes a new tower in Goregaon and a project in Alibaug. MOSL has projected a 48% compound annual growth rate (CAGR) in pre-sales over FY25–27.
Antique has maintained a 'Buy' rating on Oberoi Realty, raising the target price to Rs 2,269 from Rs 2,180.
ADVERTISEMENT The brokerage noted it was a good quarter and highlighted that attention now turns to the company's project launches in the second half of the fiscal year. Oberoi Realty is expected to see its rental EBITDA surpass Rs 1,000 crore in FY26, including over Rs 80 crore in EBITDA from the Westin. The company also holds significant ready residential inventory in its Three Sixty West and Mulund projects, with an estimated aggregate value of Rs 6,400 crore as of the end of Q1FY26. Antique estimates that the company could achieve pre-sales of around Rs 60–65 billion in FY26.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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