Oberoi Realty shares hit record high as Nomura initiates coverage 

Shares of Oberoi Realty Ltd hit their record high on Wednesday after global brokerage Nomura initiated coverage with a 'buy' rating on the real estate sector stock. It has assigned a price target of Rs 2,500, an upside of 21 percent in the stock from Tuesday's closing level.

Oberoi Realty stock rose 5% intra day to a high of Rs 2,164.05 on BSE. Later, Oberoi Realty stock closed 5.13% higher at Rs 2,164.30 today. Market cap of Oberoi Realty rose to Rs 78,694 crore. Total 0.48 lakh shares of the realty firm changed hands amouting to turnover of Rs 10.25 crore on BSE.

The stock has gained 50.41% in the last one year and risen 49.51% since the beginning of this year. In two years, the stock has gained 127%

In terms of technicals, the relative strength index (RSI) of Oberoi Realty stands at 61.1, signaling it's trading neither in the overbought nor in the oversold zone. Oberoi Realty shares are trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Nomura is bullish over Oberoi Realty due to the company's strong growth visibility. Solid pre-sales and cash generation expectations from the real estate major supported by aggressive business development on the back of its low net/debt to equity position bode well for the company, analysts at the brokerage said. 

Nomura expects Oberoi Realty's pre-sales to log a 40 percent CAGR (Compound Annual Growth Rate) over FY24-27 with an 50 percent embedded EBITDA margin as the company as it monetises its residential portfolio worth around Rs 80,000 crore as of Q2 FY25.

"Cumulative hotel and annuity revenue is expected to record a 35 percent CAGR over the same period  as the company's assets-- Commerz III Office, Sky City mall and Ritz Carlton Hotel (Worli), become largely leased out or operational," said Nomura.

Meanwhile, Indian equity benchmarks today continued their upward move for the fourth consecutive session, led by gains in banks and financials. Broader indices (mid- and small-cap shares) also settled on a positive note.