OBEROIRLTY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | OBEROIRLTY | Market Cap | 52,590 Cr. | Current Price | 1,446 ₹ | High / Low | 2,006 ₹ |
| Stock P/E | 30.5 | Book Value | 418 ₹ | Dividend Yield | 0.55 % | ROCE | 15.3 % |
| ROE | 12.6 % | Face Value | 10.0 ₹ | DMA 50 | 1,526 ₹ | DMA 200 | 1,629 ₹ |
| Chg in FII Hold | 0.52 % | Chg in DII Hold | -0.39 % | PAT Qtr | 486 Cr. | PAT Prev Qtr | 618 Cr. |
| RSI | 40.9 | MACD | -24.8 | Volume | 7,76,640 | Avg Vol 1Wk | 8,16,898 |
| Low price | 1,396 ₹ | High price | 2,006 ₹ | PEG Ratio | 0.46 | Debt to equity | 0.20 |
| 52w Index | 8.24 % | Qtr Profit Var | -9.36 % | EPS | 47.0 ₹ | Industry PE | 25.3 |
💰 Revenue & Profitability: Quarterly PAT at ₹486 Cr declined from ₹618 Cr (-9.36%), showing short-term weakness. EPS at ₹47.0 remains strong, reflecting solid earnings power.
📊 Return Metrics: ROCE at 15.3% and ROE at 12.6% are healthy, indicating efficient capital utilization compared to peers.
📉 Valuation: P/E of 30.5 is slightly above industry average (25.3), suggesting mild overvaluation. P/B ~3.5 is high, but PEG ratio of 0.46 indicates valuation is supported by earnings growth.
🏦 Debt & Cash Flow: Debt-to-equity at 0.20 is very comfortable, showing strong balance sheet health.
🏭 Business Model: Oberoi Realty operates in premium real estate, benefiting from brand strength and demand in Mumbai’s luxury housing and commercial projects. Competitive advantage lies in strong execution and reputation.
📈 Entry Zone: CMP ₹1,446 is near support (~₹1,396). Entry zone between ₹1,400–₹1,450 offers margin of safety. Long-term holding is favorable given strong fundamentals and low debt, though cyclical risks in real estate remain.
Positive
- Strong ROCE (15.3%) and ROE (12.6%).
- Low debt-to-equity ratio (0.20).
- EPS of ₹47.0 supports valuation.
- FII holding increased (+0.52%), showing foreign investor confidence.
Limitation
- Quarterly PAT declined (-9.36%).
- P/E (30.5) above industry average (25.3).
- High P/B ratio (~3.5) limits margin of safety.
Company Negative News
- Recent profit decline indicates short-term weakness.
- DII holding reduced (-0.39%), showing lower domestic institutional support.
Company Positive News
- Strong brand presence in premium real estate market.
- FII inflows increased, reflecting global confidence.
Industry
- Real estate sector is cyclical, tied to interest rates and housing demand.
- Industry P/E at 25.3 shows Oberoi trades at a premium, justified by strong fundamentals.
Conclusion
✅ Oberoi Realty has strong fundamentals with healthy ROE/ROCE, low debt, and solid EPS. Despite short-term profit decline and premium valuation, it remains a robust long-term holding. Entry zone between ₹1,400–₹1,450 is attractive for accumulation, with potential upside as demand in premium real estate continues.
Selva, would you like me to extend this into a sector basket overlay comparing Oberoi Realty with peers like DLF, Godrej Properties, and Prestige Estates? That way you’ll see valuation, ROE/ROCE, and PEG side by side for sector rotation clarity.