OBEROIRLTY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.3

📊 Financial Overview

• Profitability: PAT at ₹618 Cr, up from ₹309 Cr QoQ; EPS at ₹48.8
• Margins: ROCE at 15.3%, ROE at 12.6% — solid efficiency for a real estate developer
• Debt Profile: Debt-to-equity ratio of 0.20 — low leverage, financially sound
• Dividend Yield: 0.45% — modest but consistent

📈 Valuation Metrics

• P/E Ratio: 36.4 — slightly below industry average of 42.4
• P/B Ratio: ~4.2 — reasonable given book value ₹418
• PEG Ratio: 0.55 — indicates undervaluation relative to growth
• Intrinsic Value: Estimated around ₹1,850–₹1,950 based on earnings and sector multiples

🏢 Business Model & Competitive Edge

• Core Operations: Oberoi Realty is a premium real estate developer focused on residential, commercial, and hospitality projects in Mumbai
• Moat: Strong brand equity, prime land bank, and execution track record in luxury housing
• Growth Drivers: Urban housing demand, redevelopment opportunities, and commercial leasing

📌 Entry Zone Recommendation

• Suggested Entry: ₹1,650–₹1,700 — near DMA50 and intrinsic value
• Technical Indicators: RSI at 68.3 (approaching overbought), MACD positive — bullish momentum, but caution advised

📈 Long-Term Holding Guidance

• Hold for long-term if accumulated near support; ideal for investors seeking exposure to premium urban real estate
• Monitor project launches and regulatory developments in Mumbai realty

✅ Positive

• Strong PAT growth and EPS performance
• Low debt and solid return ratios
• DII holding increased by 3.05%
• PEG ratio indicates undervaluation

⚠️ Limitation

• FII holding declined by 3.30%
• RSI nearing overbought zone
• Stock down ~24% from 52-week high

📰 Company Negative News

• FII outflows amid sector-wide caution and profit booking in real estate

🌟 Company Positive News

• Q2 FY26 PAT up 33.2% QoQ; strong performance in residential segment
• New launches in Goregaon and Thane expected to drive FY26 revenue

🏭 Industry

• Real estate industry P/E at 42.4 — Oberoi trades slightly below average
• Sector driven by urbanization, housing demand, and infrastructure development

🧾 Conclusion

• Oberoi Realty is a premium developer with strong fundamentals and growth visibility in Mumbai’s real estate market
• Accumulate near support zones for long-term value; monitor institutional flows and project execution