Nomura has initiated a Buy rating on Oberoi Realty Ltd. with a target price of ₹2,500, suggesting a potential upside of 21.5%. The brokerage highlighted the company’s robust pre-sales momentum and strong cash generation as key growth drivers.
Key highlights from Nomura’s report:
- Pre-sales growth: Expected to witness a 40% CAGR over FY24-27, supported by favorable market conditions and aggressive business development.
- Profitability: Embedded EBITDA margins of over 50% are anticipated during the forecast period.
- Cash flow: Projected operating cash flow of ₹3,000-4,000 crore annually until FY27, excluding new business development and annuity asset investments.
- Hotel and annuity revenue: Cumulative revenue is expected to record a 35% CAGR over FY24-27, further diversifying the company’s income streams.
Nomura’s report underscores Oberoi Realty’s ability to sustain growth while maintaining a strong financial profile, making it a compelling investment in the real estate sector.
Disclaimer: These articles are for informational purposes only and do not constitute investment advice. Please consult a financial advisor before making any investment decisions.