Oberoi Realty stock hinges on how it reinvests cash flows

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₹1,070 crore driven by healthy bookings in this project. It sold six units at Three Sixty West during the quarter (versus eight in all of FY24) for ₹480 crore, giving it an average realisation of about ₹1,28,200 per sq ft of carpet area. Management expects a similar sales run rate in this project in the coming quarters.

Pre-sales in residential projects at Borivali and Mulund kept up the pace year-on-year, but were weak sequentially. This, and a lack of new tower launches, hampered Oberoi’s sequential pre-sales performance. However, it plans to launch the Pokhran Road project in Thane and additional towers at the Borivali and Goregaon projects during the festive season this year.

Projects at Gurugram, Adarsh Nagar in Worli, and Tardeo are set to be launched in FY26. Also read: ITC shares hit a new high post budget. What is next? Timely launches and speedy inventory liquidation is crucial for real estate stocks.

But in the case of Oberoi Realty, the stock’s re-rating largely depends on how it reinvests cash flows from sold inventory. An Antique Stock Broking report noted that Oberoi has failed to capitalise on the residential upcycle in the past three years, but with significant land parcels at its disposal, project launches in FY25 and FY26 could help the company benefit from ongoing demand momentum in the sector. Also read: STT biggest negative for financial intermediaries, other BFSI cos in good stead On the commercial side, rental income commenced from Commerz III in Q1FY25 and the project saw 54% occupancy.