₹19,000/sq.ft. (carpet area), Oberoi Realty has sold only 9% of the launched units," said Antique Stock Broking in a report. The brokerage had expected Oberoi to sell around 25% of the launched inventory in Q3FY24.
In this backdrop, while pre-sales during the third quarter rose by 25% year-on-year to ₹787 crore, it fell 18% sequentially. The muted Forestville launch coupled with weak sales traction in Oberoi Realty’s 360 West (Worli), Sky City (Borivali) and Mulund projects have prompted some brokerages to trim pre-sales estimates for FY24 and FY25. Moreover, Oberoi continues to test the patience of its investors and has once again deferred the launch of its much-awaited Pokhran Road 2 project in Thane.
It now plans to launch the project in Q2FY25, instead of in Q4FY24. In the first phase, the company will develop a part of the land parcel comprising five residential towers with a total area of 3.5-4 million sq.ft, a hotel, and a school, the management said. Nonetheless, since this project was seen as a near-term volume driver, the deferment is a sentiment dampener.
The management expects Forestville to annually contribute ₹500-800 crore to the company’s total pre-sales going ahead. Meanwhile, to diversify its geographical presence, Oberoi ventured into the National Capital Region during the third quarter by acquiring around 14.82 acres of land parcel from Ireo Residences Co. Pvt.
Ltd. But this may not move the needle for the stock meaningfully. Given the slowdown in traction at existing projects and Oberoi’s already large pipeline of seven projects, analysts at Motilal Oswal Financial Services believe Oberoi would focus on scaling up the run-rate in its current portfolio before venturing out for additional land parcels.
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