(Reuters) -India’s Oberoi Realty reported a fourth-quarter profit below estimates on Monday, hurt by a slowdown in sales and a lack of new launches.
The real-estate developer’s consolidated net profit slumped 45% to 4.33 billion rupees ($51 million) for the quarter ending March 31, missing analysts’ average estimate of 5.73 billion rupees, as per data compiled by LSEG.
Revenue from operations fell 12.5% to 11.50 billion rupees.
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KEY CONTEXT
Analysts flagged that Oberoi Realty had no new launches in the quarter, and sales momentum in its Thane project, outside India’s financial capital Mumbai, declined after a strong launch, suggesting possible cancellations and a sales slowdown.
Moreover, a more than threefold jump in its land acquisition costs also hurt profit.
This comes even as demand for homes in India, particularly in the premium segment, has remained strong over recent quarters, as an increasingly affluent middle class in tier-1 cities is looking to upgrade to more premium offerings – from branded apparel to smartphones.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth rating* analyst price yield
(%) s target** (%)
Oberoi Realty 19.84 14.46 27.69 24.98 Buy 23 0.79 0.50
Sobha 28.88 18.02 19.38 214.09 Buy 15 0.74 0.24
DLF 36.79 44.70 29.31 28.39 Buy 20 0.71 0.77
Brigade Enterprises 29.05 14.64 12.79 29.37 Strong 11 0.74 0.20
Buy
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.1910 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Vijay Kishore)
