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OBEROIRLTY: Future Returns Will Likely Disappoint Amid Slower Revenue Trajectory

Mumbai Dependence And Urban Shifts Will Expose Vulnerabilities

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OBEROIRLTY
AnalystLowTarget
Not Invested
Published 21 Jun 2025

Update shared on 12 Dec 2025

Fair value Increased 1.86%
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AnalystLowTarget's Fair Value
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1Y
-29.7%
7D
-0.07%

Analysts have nudged their price target for Oberoi Realty higher from ₹1,314 to about ₹1,338, as they now expect slightly stronger profitability to more than offset a modest tempering of long term revenue growth assumptions and valuation multiples.

What's in the News

  • The company has entered into a development agreement to redevelop a 4,706 square meter land parcel on Nepean Sea Road in Mumbai, with an estimated 0.118 million square feet of free sale RERA carpet area entitlement, subject to DC&PR 2034 and applicable laws (company announcement).
  • The company is among several real estate and hospitality players that have submitted expressions of interest in acquiring the Courtyard by Marriott five star hotel in Pune, a distressed asset undergoing a sale process overseen by the bankruptcy court (media report on M&A interest).
  • A board meeting is scheduled for October 15, 2025 to consider and approve unaudited financial results for the quarter ended September 30, 2025, and to consider declaring a second interim dividend for FY25 26, including fixing the record date (board meeting notice).

Valuation Changes

  • Fair Value: nudged higher from about ₹1,314 to about ₹1,338, reflecting a modest upward revision in intrinsic value estimates.
  • Discount Rate: increased slightly from around 15.44 percent to around 15.72 percent, implying a marginally higher required return or risk assumption.
  • Revenue Growth: reduced meaningfully from roughly 23.30 percent to about 18.63 percent, indicating more conservative long term top line expectations.
  • Net Profit Margin: raised from about 31.58 percent to about 33.93 percent, capturing expectations of stronger profitability.
  • Future P/E: trimmed marginally from about 25.46x to about 24.94x, suggesting a slightly lower valuation multiple applied to forward earnings.

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