Oberoi Realty share price: Oberoi Realty shares hit record high after Nomura initiates coverage with Rs 2,500 target price

Shares of Oberoi Realty soared to a record high, climbing over 5% on Wednesday to Rs 2162.45 on the BSE after domestic brokerage Nomura initiated coverage on the company with a ‘buy’ rating and a target price of Rs 2,500, signalling a potential upside of over 15% from the current level.

Nomura Institutional Equities cited robust growth drivers, including strong pre-sales momentum, rising annuity income, and strategic business development initiatives as drivers for its bullish outlook. The brokerage projects a compound annual growth rate (CAGR) of 40% in pre-sales, expecting the figure to reach Rs 11,500 crore over the next two fiscal years.

“We expect solid pre-sales and cash generation,” the brokerage said, adding that “the company is poised for aggressive business development.”

Key growth enablers for the company include ready-to-sell inventory from marquee projects like 360 West, Eternia, and Enigma, alongside launches in Sky City (Borivali), Elysian (Goregaon), and OGC Thane, the brokerage noted.

Oberoi Realty’s residential projects are forecast to maintain EBITDA margins above 50%, supported by premium pricing strategies and strategic land acquisitions, which have historically delivered superior returns.

Additionally, Nomura anticipates a 35% CAGR in cumulative annuity and hotel revenues, projected to reach Rs 1,800 crore by FY27. Operating cash flows are expected to remain robust at Rs 3,000-4,000 crore annually during this period.With a minimal net debt-to-equity ratio of 0.02 times, Oberoi Realty is well-positioned for aggressive expansion, including potential investments in land acquisitions, according to the brokerage. Its strong strategic positioning and execution capabilities are seen as key factors for sustained growth.Oberoi Realty shares have gained 46.99% year-to-date.

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