India's Oberoi Realty posts Q2 profit jump on strong demand for premium housing

Oberoi Realty

18/10/2024 12:16

Oct 18 (Reuters) - India's Oberoi Realty  OEBO.NS  reported a jump in second-quarter profit boosted by
sustained demand for its premium projects, including luxury homes and office spaces.
    The real-estate developer's consolidated net profit jumped 29% to 5.89 billion rupees ($70 million) in the three
months ended Sept. 30. 
    Its revenue from operations grew 8.5% to 13.20 billion rupees, marginally beating analysts' average estimates of
13.17 billion rupees, per data compiled by LSEG. 
    For further earnings highlights, (click here).
    
    KEY CONTEXT 
    India's real estate sector has witnessed continued demand for home ownership in the past few quarters, with higher
focus on premium properties.
    Housing demand in India is heavily tilted towards the luxury segment with people in tier-one cities opting for
premium homes as affordable housing market lags, according to analysts.
    Additionally, return-to-office initiatives by companies have further bolstered rental realisations for developers
such as Oberoi Realty.
    The Mumbai-based developer is the first among its peers to report quarterly results. 
    
        
    PEER COMPARISON 
    
                                 Valuation (next 12     Estimates (next 12    Analysts' sentiment              
                                 months)                months)                                                
                      RIC        PE     EV/EBITDA       Revenue     Profit    Mean     No. of   Stock to       Div
                                                        growth      growth    rating*  analyst  price          yield
                                                                                       s        target**       (%)
 Oberoi Realty         OEBO.NS   26.73  19.92           26.98       27.64     Hold     20       1.08           0.39
 DLF                   DLF.NS    53.93  66.77           26.56       25.07     Buy      16       0.91           0.57
 Sobha                 SOBH.NS   40.61  27.21           25.32       142.22    Buy      13       0.88           0.16
 Brigade Enterprises   BRIG.NS   43.47  21.21           6.11        31.37     Buy      10       0.96           0.15
 * The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
   
    JULY-SEPTEMBER STOCK PERFORMANCE
    
    
    -- All data from LSEG
    -- $1 = 84.0300 Indian rupees

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JULY-SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3BOx8X5
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 (Reporting by Manvi Pant in Bengaluru; Editing by Janane Venkatraman)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))