Indian markets were trading flat on Thursday as overall trading volumes were lower due to holiday season. During the last week of the year, trading across global markets declines as traders and bigger investors go for holidays. We can expect stock specific moves during this week. IREDA, BEML, SAIL, Dredging Corporation and NTPC Green Energy Shares were trading lower today.

NTPC Green Energy was among biggest losers in public sector stocks as lock in period for anchor investors finished today. The trading volumes were high in NTPC Green Energy.

Elara Capital Suggests Strong Buy for Oberoi Realty

Oberoi Realty’s Expansion into Alibaug: A Game-Changer for the company
Oberoi Realty's ambitious foray into Alibaug marks a pivotal moment in its growth strategy, underscoring its commitment to luxury real estate in the Mumbai Metropolitan Region (MMR). The development of an 81-acre land parcel, including plans for a five-star resort and branded serviced villas, cements Oberoi Realty’s position as a leader in the premium real estate market. Elara Capital has reaffirmed its 'buy' rating on the stock, with a target price of Rs 2,350 per share, citing robust growth prospects and superior profitability metrics. Below is a detailed analysis of this development and its implications.

Oberoi Realty's Strategic Expansion into Alibaug

Development of an 81-Acre Parcel:
Oberoi Realty announced its acquisition of an 81.05-acre land parcel in Tekali village, Alibaug. The property spans 3,28,010 square meters, marking the company's first venture into this high-potential market.

Luxury Hotel and Residential Villas:
The project includes plans for a luxury five-star hotel or resort on 8.6 acres, with 30,000 square meters of floor space index (FSI). Additionally, the company will develop approximately 150 branded, fully serviced residential villas on 72.45 acres, utilizing an FSI of 120,000 square meters.

Projected Value of the Alibaug Project

Gross Development Value (GDV):
According to Elara Capital, the total GDV for this ambitious project is estimated to range between Rs 4,000 crore and Rs 5,000 crore, highlighting its significant contribution to Oberoi Realty's portfolio.

Enhanced Market Position:
This development reinforces Oberoi Realty's reputation as a dominant player in the uber-luxury segment of the MMR, catering to high-net-worth individuals (HNIs) seeking premium real estate offerings.

Pre-Sales Growth Outlook:
Elara Capital projects a compound annual growth rate (CAGR) of 59 percent in pre-sales for FY24-FY26, supported by large deal closures and a burgeoning pipeline of premium projects.

Industry-Leading Profitability Metrics

EBITDA Margins:
Oberoi Realty continues to set benchmarks in profitability, with EBITDA margins of 48 percent for FY24 and an impressive 56 percent for H1 FY25. These figures underline the company’s operational efficiency and ability to deliver high-margin projects.