OBEROIRLTY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials Overview

Profitability

PAT held steady at ₹309 Cr, though quarterly variation shows a prior dip of –32.8%.

EPS: ₹44.5 — solid earnings base for a real estate developer.

Return Metrics

ROCE: 15.3% and ROE: 12.6% — healthy, indicating efficient capital deployment.

Debt Profile

Debt-to-equity: 0.23 — low leverage, a strong position in a capital-intensive industry.

Cash Flow: Not explicitly stated, but consistent profits and low debt suggest stable operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 37.2 Slightly below industry average (40.7) — fair valuation.

P/B Ratio ~4.19 Reasonable given strong brand and asset base.

PEG Ratio 0.56 Attractive — suggests undervaluation relative to growth.

Intrinsic Value Estimated near ₹1,750–₹1,800 Current price of ₹1,658 is slightly below fair value — favorable entry point.

🧠 Business Model & Competitive Advantage

Oberoi Realty Ltd. is a premium real estate developer headquartered in Mumbai, with operations across

Core Segments

Residential: High-end apartments and gated communities in prime Mumbai locations.

Commercial: Grade-A office spaces with long-term leasing models.

Retail & Hospitality: Includes Oberoi Mall and The Westin Mumbai — stable annuity income streams.

Strategic Strengths

Focus on prime land parcels in Mumbai — limited competition due to land scarcity.

Strong brand reputation in luxury and premium housing — enables pricing power and customer loyalty.

Efficient scale and execution — high margins and fast project turnaround.

Economic Moat

Wide moat driven by intangible assets (brand), location dominance, and limited competition in premium zones

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Oberoi’s competitive edge lies in its luxury positioning, multi-vertical integration, and strategic land bank, making it one of the most resilient players in India’s urban real estate market.

📈 Technical & Sentiment Signals

RSI: 53.4 — neutral zone, no strong momentum.

MACD: Negative — mild bearish crossover.

Volume: Near average — suggests consolidation.

DMA 50/200: Price below both — short-term weakness, long-term support near ₹1,730.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹1,600–₹1,650 — near current levels and below DMA resistance.

Long-Term View: OBEROIRLTY is a high-quality real estate stock with strong fundamentals, low debt, and a wide economic moat. Suitable for long-term holding, especially for investors seeking exposure to India’s premium urban housing and commercial real estate. Dividend yield of 0.48% adds modest income support.

You can explore Oberoi’s economic moat analysis for deeper insights

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. Let me know if you'd like a comparison with Godrej Properties or Prestige Estates.

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