Axis Capital downgrades Oberoi Realty stock to Reduce on valuation concerns

Published 21/07/2025, 13:08
Axis Capital downgrades Oberoi Realty stock to Reduce on valuation concerns

Investing.com - Axis Capital (NYSE:AXS) has downgraded Oberoi Realty (NSE:OEBO) Ltd (NS:OBER) from Add to Reduce with a price target of INR1,750.00, citing recent share price appreciation that has already priced in the company’s growth potential.

The downgrade follows a 13% increase in Oberoi Realty’s stock price since Axis Capital’s previous upgrade in April 2025, according to analyst Samar Sarda. Despite maintaining a positive outlook on the company’s fundamentals, the research firm believes the current valuation fully reflects future growth prospects.

Oberoi Realty’s FY25 annual report highlighted strong performance with pre-sales growing 31% year-over-year to Rs 53 billion. The company expects this figure to reach Rs 82 billion by FY27, supported by its healthy launch pipeline in the residential segment.

The real estate developer’s annuity segment is projected to deliver 19% compound annual growth rate in rentals as new assets continue to ramp up. Additionally, the hospitality segment is expected to benefit from the completion of the Ritz Carlton in Worli.

Axis Capital’s report noted that Oberoi Realty continues to benefit from sustained buyer confidence, increasing consumer aspiration, and economic stability in its residential business, while its commercial segment is strengthened by India’s emergence as a preferred office destination.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.