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OBEROIRLTY - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.9

Last Updated Time : 22 Mar 26, 11:15 pm

Fundamental 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.

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