Oberoi Realty soars 7% as analysts remain bullish post residential project from GSK
Morgan Stanley also maintained its overweight rating on the stock with a target price Rs 399 as it feels land win is strategic & value-accretive.
Moneycontrol News
Oberoi Realty share price rallied 7.4 percent intraday Monday to hit a fresh 52-week high of Rs 437.50, following residential project from GlaxoSmithKline Pharmaceuticals.
"GlaxoSmithKline Pharmaceuticals has selected Oberoi Realty as the successful bidder for the land admeasuring approximately 60 acres located at Thane, Maharashtra," the Mumbai-based real estate firm said in its filing.
The company’s bid for purchase of the said land was for a consideration of Rs 555 crore, it added.
The proposed purchase of land is subject to compliance and adherence with the terms and conditions of the bid, including receipt of all statutory and regulatory approvals from the concerned authorities.
While maintaining a buy call on the stock with increased target at Rs 516 (from Rs 484), CLSA said recently-awarded Thane project may substantially scale-up company's residential sales and should add 30-40 percent to company's project portfolio by area.
While land acquisition will increase gearing to 0.2x, there is still room to gear up further, it added. Land deal will add Rs 51 per share to company's net asset value, it feels.
Morgan Stanley also maintained its overweight rating on the stock with a target price Rs 399 as it feels land win is strategic & value-accretive.
The research house expects Oberoi to do more such large transactions.
JPMorgan said the project can easily be funded given underlevered rent company and finished inventory in Goregaon. The research house has maintained overweight rating on the stock with a target price of Rs 440.
At 13:27 hours IST, the stock price was quoting at Rs 425.65, up Rs 18.35, or 4.51 percent amid high volumes on the BSE.
