Shares of Oberoi Realty went high by over 5 percent after the company reported a consolidated net profit of Rs 403.08 crore in the first quarter of the financial year 2023 (Q1FY23), up from Rs 80.63 crore in the corresponding quarter the previous fiscal.

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The real estate company's shares closed at Rs 900.4 apiece on the BSE today.

What do Oberoi Realty finances say?

The real estate company’s revenue for the reporting quarter stood at Rs 934.81 crore as compared to Rs 294.77 crore in the first quarter of 2021-22. Core profit came in at Rs 514 crore for the quarter as against Rs 135 crore in the year-ago period. The operating margin was 53.9 percent, up from 43.93 percent in the corresponding period last year.

Also read: Kolkata and Chennai have seen weakest growth in home sales among biggest Indian realty markets

“With the increased economic activity and a strong consumer sentiment towards home ownership, there is a consumption-led momentum across all our residential projects. Our other business portfolios — commercial and retail - have also bounced back,” said Mr Vikas Oberoi, CMD, Oberoi Realty, in a press release.

In an earnings call, the company announced that it has received an occupancy certificate for its mixed-use development property, Three Sixty West, Worli, Mumbai. The company expects its sales vertical to improve due to the approval.

They expect a realization of Rs 1,10,000-1,20,000/ square feet which is 10-20 percent higher than current average.

What do analysts believe?

Brokerage firm Jeffries has given a hold rating on the Oberoi realty stock with a target price of Rs 860 per share. The firm views that the real estate company’s Q1 financials were strong with pre-sales at a four-quarter low as inventory declined. Management expressed confidence in strong residential, Worli project occupancy and new launches are expected to drive 2022-23 sales, said Jeffries.

Also read: Oberoi Realty Q2 sales bookings jump over 2-fold to Rs 828.52 crore

Morgan Stanley maintains an equal-weight rating on Oberoi Realty with a target price of Rs 885 per share. "Key themes include continued momentum in residential pre-sales and rental asset build-out. New project acquisitions will also be one of the catalysts," it said.

"Full valuations drive equal-weight call," Morgan Stanley added.

HDFC Securities also has a buy call on the real estate company's stock with a target price of Rs 1,118 per share. Representing an upside of over 27 percent from the current market price.

Also read: Bengaluru real estate co to build mega residential hub in Chennai, eyes Rs 6,000 crore revenue in 5 years

(Edited by : Nishtha Pandey)