Maintain 'buy' on Oberoi Realty - TP Rs.351 - Geojit BNP Paribas Financial Services

- 4QFY13 revenue is better than market estimates; PAT in line with expectations.

- Revenue at Rs.330 crore is up 14.2% yoy and 6% up qoq.

- EBITDA margin was 200 bps lower yoy due to a one time increase in construction costs.

- Operating margin in the hospitality business was 150 bps lower yoy, though it showed an improvement in qoq basis.

- Contracted sales volume was 0.12 million sq ft, which was in line with 3QFY13 and 0.18 million sq ft in 4QFY12. Subdued volume was primarily on account of the absence of new launches.

- The company has not yet included any sales from its Worli project and is yet to launch its Mulund project.

- Net cash balance remained healthy at Rs.10.7 billion versus Rs.10.9 billion in 3Q.

- Average realization across projects improved 10.9% qoq.

- The next catalysts for the share price are visibility of new launches, land acquisitions and leasing updates on commerce 2.

- Key risks include slower than anticipated execution, value destructive acquisition and slowdown in the macro environment.

Source : Equity Bulls

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