The article discusses Oberoi Realty’s surge in stock value following the announcement of stellar Q4 results and plans for fundraising. Here’s a detailed breakdown:
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Financial Performance:
- Oberoi Realty reported its “best-ever” quarterly net profit in Q4 FY24, with a significant year-on-year increase of 64% to Rs 788 crore.
- Revenue for the quarter surged by nearly 37% year-on-year to Rs 1,315 crore, indicating robust operational performance.
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Market Response:
- Shares of Oberoi Realty surged over 4% on May 15, reaching a new all-time high of Rs 1629.05 apiece, following the announcement of stellar Q4 results.
- The market’s positive reaction reflects investor confidence in the company’s financial health and growth prospects.
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Business Expansion:
- Oberoi Realty entered into an agreement for the development and redevelopment of approximately 12,790 sq.mtr. land parcel in Worli, Mumbai.
- Analysts at Nuvama Institutional Equities estimate potential pre-sales of Rs 6,400 crore from this project, highlighting significant growth opportunities for the company.
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Fundraising Plans:
- Oberoi Realty’s board approved plans to raise funds of up to Rs 4,000 crore through the issuance of non-convertible debentures (NCDs) and a qualified institutional placement (QIP) of equity shares.
- The fundraising plan includes issuing NCDs worth up to Rs 2,000 crore via private placement, with the remainder raised through the QIP route.
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Analyst Perspective:
- Nuvama Institutional Equities raised its price target for Oberoi Realty stock by 6% to Rs 1,596 while maintaining a ‘hold’ rating.
- The brokerage views traction in pre-sales and project launches as potential catalysts for Oberoi Realty’s stock performance.
