BackOberoi Realty share price jumps 5% to hit 52-week high on foray in Delhi-NCR real estate market
Oberoi Realty stock prices are in a strong uptrend, up around 22% in November. Prices may extend upmove in the near term, with any dip likely to get bought into, says technical analyst.
PremiumOberoi Realty share price jumped nearly 5% to touch 52-week high of ₹1,407.15 apiece on BSE, on Monday's session, following the company's purchase of nearly 15 acres of land in Gurugram for ₹597 crore to develop a luxury housing project, marking its entry into the Delhi-NCR real estate market. Oberoi Realty shares opened at ₹1,369.25 apiece on BSE. Oberoi Realty stock price has been on a bull run for the fourth consecutive session today.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, Oberoi Realty stock prices are in a strong uptrend and has seen vertical rally in the November month, up around 22%. Prices may extend upmove in the near term, with any dip likely to get bought into, traders are advised to have buy on dip approach with ₹1,340 to act as support whereas ₹1,430 as next resistance.
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“We write to inform you that the Company has executed an Agreement for Sale with Ireo Residences Company Private Limited and others for acquiring land admeasuring approximately 14.816 Acres equivalent to 59,956.20 square meters at Sector 58, Gurugram, Haryana," the company said in an exchange filing on Friday, November 17.
According to the company, the transaction will be compensated with event- or time-linked financial consideration of up to ₹597 crore, as well as up to a specific project area for current homeowners and other parties, all subject to the terms and conditions mentioned above.
As of right now, the company's entitlement from the project, at full potential, is estimated to be up to roughly 2.6 million square feet of FAR in accordance with the current laws, rules, and policies. The company has acquired ownership of the above-mentioned land upon execution of the above agreement.
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In a report, brokerage Motilal Oswal Financial Services expressed the opinion that Oberoi Realty's eagerly anticipated entry into the NCR offers additional growth visibility. But while it waits for clarification on the project's launch schedule, the brokerage holds onto its pre-sales and cash flow estimate.
The residential business of Oberoi Realty implies a value of approximately ₹36-37 crore at current valuations. Meanwhile, the estimated value of the existing pipeline, which includes the Gurugram project, is ₹23 crore, implying 50-60% of going concern premium.
"We believe with seven new projects (two projects in Thane, GSK-Worli, Peddar Road, Tardeo redevelopment, potential MHADA redevelopment in Andheri and Gurugram) already tied up, the management is unlikely to be aggressive on new project acquisitions in the near term.
Thus, implied going concern premium already accounts for near-term growth visibility. We reiterate our Neutral rating with an unchanged target price of ₹1,200, indicating 11% downside potential," the brokerage said in its report.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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