Oberoi Realty Heads For Sixth Straight Fall Despite Strong Q3

Oberoi Realty shares were on track for their sixth straight day of fall despite the realty developer posting strong numbers in the December quarter. Mumbai-based Oberoi Realty's consolidated net profit jumped 164 per cent year-on-year to Rs 209 crore as sales more than tripled to Rs 790 crore in the December quarter.

Oberoi Realty sold 645 housing units for about Rs 1,775 crore in the third quarter of the FY16, largely in its newly-launched residential project at Borivali in Mumbai.

According to Maybank, Oberoi Realty's quarterly presales, revenue, and earnings were the highest ever.

"We keep our FY16 earnings forecast unchanged as presales from Excuisite, the completed project, are in line... We expect the presales momentum to continue, supported by launch of the Worli project and acceleration in the Mulund project following commencement of construction. Successful launch of the Worli project in Q4 will be the next catalyst for the stock," the brokerage said.

Maybank maintained its "buy" call on Oberoi Realty with net asset value-based target price of Rs 388.

Oberoi Realty shares had gained as much as 6 per cent in early trade, but the stock came under profit taking soon after.

Shares of Oberoi Realty closed at Rs 248, down 0.84 per cent compared to broad market indicator, Sensex, which closed at 24,188, down 1 per cent.

With agency inputs