The company recorded a consolidated revenue of Rs 6.20 billion for Q2FY19, up 101% against Rs 3.08 billion for Q2FY18.
The market analysts expect the liquidity stress in the NBFC sector is likely to benefit developers like Oberoi with a good execution track record.
“Oberoi scores high on operational transparency and disclosures — key differentiators in the sector. The near-complete residential unsold inventory of Rs 35 billion plus along with net cash balance will enable it to invest aggressively in growth. Regulatory headwinds like RERA and liquidity issues at the NBFC level augur well for Oberoi with a strong brand, quality assets and timely execution track record,” analysts at Elara Capital said in result update.
The brokerage firm believes the company has multiple triggers over the next 12 months, such as the launch of Thane and subsequent phases at Borivali & Goregaon projects. Post the recent correction in the stock price, it revised rating to ‘buy’ from ‘accumulate’ with a target price of Rs 550 per share.
“We remain positive on Oberoi due to its strong balance sheet and brand equity, which help it to command premium pricing. We reiterate our Buy rating and derive a SOTP-based target price of Rs 574. Our calculation captures the value of emerging from Oberoi existing development potential,” Motilal Oswal Securities said in result update.
At 1:20 PM; the stock was up 6.5% at Rs 420 on the BSE, as compared to 0.53% rise in the S&P BSE Sensex. A combined 862,150 equity shares changed hands on the counter on the NSE and BSE so far.