India's Oberoi Realty faces execution test after record bookings

Oberoi Realty

Yesterday 07:46

** Oberoi Realty OEBO.NS reported marginal rise in Q2 net profit and 6.1% revenue decline, even as quarterly pre-sales surged to a record
** Shares down 2.6% at 1,632.20 rupees
PROJECT DELAYS, LEGAL UNCERTAINTY WEIGH ON OUTLOOK
** Systematix ("hold", TP:1,867 rupees) says strong Gurugram bookings have yet to translate into earnings growth, with revenue from project expected to be recognised only upon completion
** Citi ("neutral"; cuts TP to 1,850 rupees from 1,990 rupees) flags potential delays of up to quarter in select Mumbai launches and legal uncertainty surrounding further sales at Three Sixty North
** Jefferies ("hold"; cuts TP to 1,890 rupees from 1,970 rupees) expects Mumbai project launches to gather pace from FY28, while trimming FY28 and FY29 earnings estimates
** Ambit Capital ("buy"; cuts TP to 2,110 rupees from 2,150 rupees) says timely project launches, resolution of Gurugram litigation and new business development deals remain key to further upside

(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))