JPMorgan On Oberoi Realty
JPMorgan maintained an “overweight” call with an unchanged target price of Rs 2,000.
The brokerage highlighted the realty company’s robust sales and steady free cash flow — usually an indicator of financial stability.
JPMorgan also noted a few strong positives for the company such as strong sales driven by new launches at Elysian, Gurgaon and a comfortable net debt to equity of 0.12x.
Oberoi Realty’s annuity business has shown strength as well, with steady occupancy rates.
However, JPMorgan has flagged slower collections and development margin slowing to 45% during the quarter — key negatives for the company going forward.
