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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.
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