Buy Oberoi Realty Ltd - Emkay

Reco: BUY
CMP: Rs 237
Target Price: Rs 315

At CMP, most Concerns are priced-in

- Sells 1.23 lakh sq ft (lsf) in Q1FY13 for Rs 2.1bn against 1.76 lsf for Rs 2.7bn in Q4FY12 due to price hikes. We believe, there is no room for further price hike in near term

- Commercial asset development continues to be mix. Prisma construction stalled for 2nd quarter, while Commerz2 development is as per schedule with leasing headwinds

- Launch of Oasis is seen in Q2FY13 with ~1.25 lsf of sold area transferred from Oberoi Skyz. Environmental clearance of Exotica (Mulund) is delayed to Q2FY13, launch in Q3FY13E

- Maintain our 1-year TP at Rs 315 with upgrade to BUY rating. CMP provides a good entry point as we believe a most of the concerns are priced-in.

Source : Equity Bulls

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