Oberoi Realty shares rally 6% to record high as Axis Securities initiates coverage with 'buy' rating
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Oberoi Realty shares surged as much as 6.3% on Monday to a record high of Rs 2,250.65 on BSE after brokerage firm Axis Securities initiated coverage on the real estate developer with a 'buy' rating, at a target price of Rs 2,560, implying an upside of about 14% from current levels. The brokerage said that its recommendation is underpinned by the company’s strong positioning in Mumbai’s luxury real estate market, a growing annuity income stream, strategic geographic expansion, and solid financial fundamentals. Axis Capital said it also likes the company's robust annuity scale-up, entry into new key markets, and low leverage with strong cash flows. Oberoi has a substantial leasing portfolio in marquee locations, with occupancy levels exceeding 90%, the brokerage said, adding that the EBITDA margins for its current projects are consistently above 90%. Oberoi is targeting Rs 1,000 crore in annual exit rentals from its commercial p...