Antique Stock Broking has reiterated its 'Buy' rating for Oberoi Realty, setting a target price of ₹1,861 for FY28 based on an embedded EBITDA multiple of 12x. This target represents a 20% premium to the company's net asset value (NAV). Currently, Oberoi Realty's stock is trading at a 4% discount to NAV, suggesting a promising upside of approximately 26.16% from its recent closing price of ₹1,475 per share on the National Stock Exchange (NSE). The brokerage's positive outlook is bolstered by the company's strong cash flow visibility and a robust project pipeline that is well-positioned to meet anticipated market demand.
Oberoi Realty's growth trajectory is supported by a healthy pipeline of upcoming projects, with four near-term launches expected. Key developments include a significant project in Sector 58, Gurugram, with a gross development value (GDV) of over ₹11,900 crore, currently in the pre-RERA stage. Other notable projects include the Pedder Road redevelopment in South Mumbai, valued at ₹2,600 crore, which is in the Intimation of Disapproval (IOD) stage, and the Adarsh Nagar redevelopment, which has a GDV of ₹6,000 crore and is awaiting MHADA approval. Additionally, the last tower of Elysian holds a GDV of ₹4,500 crore. According to Antique, at least two of these projects are expected to launch in FY27, with the Gurugram initiative likely leading the way. Beyond these key projects, Oberoi Realty has several others in various development stages, indicating a healthy pipeline for future growth.
The brokerage also emphasizes the strong cash flow generated by Oberoi Realty's ready-to-move inventory and rental assets. It projects that the company's rental EBITDA will surpass ₹1,000 crore by FY26, with contributions exceeding ₹80 crore from the Westin hotel property. The ready residential inventory in Three Sixty West and Mulund is valued at ₹5,300 crore as of the end of Q3 FY26, complemented by pre-sales totaling ₹1,640 crore over the past four quarters. This steady sales momentum, along with anticipated rental income, is expected to underpin Oberoi Realty's financial performance in the coming years.
Moreover, Antique highlights significant developments in Oberoi Realty's rental portfolio, including the acquisition of a 99-year lease for around 11 acres in prime Bandra East, near BKC. This strategic location is anticipated to generate annual rental income of approximately ₹1,600 crore. The company will make an upfront payment of ₹500 crore and share revenue until the net present value of ₹4,900 crore is recovered, discounted at a rate of 10.45%. Upcoming projects such as The Oberoi Garden City in Thane, which will feature a 1.2 million square foot mall, and a mixed-use development in Worli, spanning 1.6 million square feet, further solidify the company's position in the market. Additionally, Oberoi Realty's hospitality portfolio is projected to expand significantly, with an increase from 269 keys to 1,030 keys over the next four to five years, marking a robust expansion strategy for the company.