This realty stock has jumped 7% so far this year, outperforming Nifty; analysts see up to 16% more upside
时间:2024-06-26 08:00:58 阅读(143)
Domestic share market continued to swing between gains and losses on Wednesday as benchmark Nifty 50 tested 17,550 levels, whereas the S&P BSE Sensex was flat at 59,015 levels. Broader markets, meanwhile, outperformed frontline indices as Nifty Smallcap 100 and Nifty Midcap 100 gained up to 0.7%. Sectorally, Nifty Media and Nifty Realty held the fort as they gained over 1%. Nifty Auto, Nifty IT, and Nifty Pharma, however, were bogged down in trade. Amid the persistent volatility, stock specific approach may help investors accumulate quality stocks, and pocket returns. Analysts at Motilal Oswal believe Oberoi Realty may be a good stock pick from the real estate sector. The stock has rallied 7% so far this year, outperforming Nifty Realty index which has tumbled 8% YTD.Investment rationale
360-West – Improved traction amid limited luxury RTMI supply
Also Read: Manufacturing activity at pre-covid levels, Capex, PLI to augment growth; check top stock picks
Pricing likely to pick-up given limited RTMI luxury supply
While Motilal Oswal has built-in a pick-up in sales velocity in near term due to the pent-up demand, sustenance of high sales velocity is expected to lead to faster-than-expected cash flows and meaningful re-rating potential for the stock. The brokerage believes that pricing is likely to pick-up given limited RTMI luxury supply. Considering limited RTMI supply of luxury projects in the vicinity, the pricing for 360-West is also likely to pick-up to Rs 100,000-120,000/sqft as indicated by the management, resulting in a revenue potential of Rs 7,500 crore for the balance inventory in Tower B.
FY23 pre-sales estimates at Rs 4,800 crore
While the company has set ambitious sales targets for 360-West, analysts for now retain their FY23 pre-sales estimates at Rs 4,800 crore with contribution of Rs 750 crore coming from 360-West. “We will closely monitor the pick-up in sales and pricing trajectory for the project from hereon and revise our estimates accordingly,” the said. Apart from sustenance of high sales velocity in 360-West, the brokerage firm sees multiple rerating triggers in Oberoi Realty including: the launch of Thane project and customer response to the same, new project additions in its core markets of Mumbai MMR, and entry into newer markets of NCR as reported by media.
Also Read: Stocks to buy: Apollo Tyres, ACE shares gearing for gains, analysts see up to 15% jump in 3 months
Oberoi Realty: BuyTarget price: Rs 1,100 | Upside: 16%Motilal Oswal analysts believe that healthy cash generation will provide a lot of comfort to Oberoi in seeking aggressive business development opportunities that will provide further growth visibility. “We maintain our BUY rating on OBER with an SOTP-based TP of Rs 1,100 (unchanged), indicating 16% upside potential,” they said. Oberoi Realty share were quoting at Rs 958 apiece, up 0.7% on NSE today.
(The stock recommendation in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
猜你喜欢
- Stocks To Watch- Zomato, Tata Power, BHEL, Rail Vikas Nigam, Ajanta Pharma, Spandana Sphoorty Financial
- Share Market Highlights- Nifty settles above 19650, Sensex above 65,750; Bank Nifty gains more than 300 points
- Share Market HIGHLIGHTS- Bulls roar, Sensex soars 1100 pts, Nifty ends above 17100; investors cheer RBI policy
- Stocks to watch- Zomato, HUDCO, Exide Industries, Lupin, Paytm, Kotak Mahindra Bank, Azad Engineering
- Strategies for excelling in Boards and JEE simultaneously
- Share Market Highlights- Nifty closes over 19430, Sensex above 65k; NTPC, JFS among top gainers
- SGX Nifty suggests gap-down start for Sensex, Nifty; 5 things to know before opening bell
- Share Market Highlights- Sensex and Nifty ends lower, Nifty Settles below 21,700, Sensex ends near 72,000, Media and PSU Banks stock gains
- Gold prices to trade sideways to up this week; may remain firm in short-term on market uncertainty