1. At a Glance
Oberoi Realty is Mumbai’s premium builder with a portfolio that screams rich. But Q4 profit dropped 45%, and the stock’s still trading at a cool ₹1,820. Welcome to real estate, where land is king, and earnings… optional?
2. Introduction with Hook
Imagine Lutyens’ Delhi met Bollywood’s Bandra, had a baby, and taught it how to build towers—that’s Oberoi Realty.
- Market Cap: ₹66,166 Cr
- Stock P/E: 30.5x
- ROCE: 17.7% (better than most landlords, and some Godmen)
In a world of cookie-cutter apartments, Oberoi builds branded palaces. But is the moat real, or just PR-fueled granite?
3. Business Model (WTF Do They Even Do?)
They’re into luxury real estate. But not just apartments—this is the Oberoi empire:
- Residential (90%+): Sky-high towers in Goregaon, Mulund, Borivali, Worli.
- Commercial: Office parks for premium rents.
- Retail: High-end malls like Oberoi Mall.
- Hospitality: Owns The Westin Mumbai Garden City.
- Recent entry into social infrastructure and JVs.
4. Financials Overview
Here’s how the concrete cash flows stack up:
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Sales (₹ Cr) | 2,694 | 4,193 | 4,496 | 5,286 |
| EBITDA (₹ Cr) | 1,182 | 2,112 | 2,430 | 3,103 |
| Net Profit (₹ Cr) | 1,047 | 1,905 | 1,927 | 2,226 |
| OPM % | 44% | 50% | 54% | 59% |
| ROE % | 15% | 15% | 15% | 14.7% |
Numbers are booming. But remember, real estate accounting makes Hogwarts look like a CA exam.
5. Valuation
Let’s put a price tag on this premium pad:
P/E Method:
- EPS FY25: ₹61.2
- Fair P/E Range: 25x – 35x
- FV Range: ₹1,530 – ₹2,142
P/BV Method:
- BVPS: ₹432
- Peer P/BV range: 3x – 4.5x
- FV Range: ₹1,296 – ₹1,944
🎯 EduInvesting FV Range: ₹1,500 – ₹2,100
You’re not overpaying if you believe in Mumbai land. You’re bankrupt if you don’t.
6. What’s Cooking – News, Triggers, Drama
- Won ₹919 Cr CIRP bid for Hotel Horizon (Juhu)—future high-rise alert!
- Board meet on July 21 to approve Q1 FY26 & consider interim dividend.
- Stage is set for Worli–Borivali–Goregaon combo sales this year.
- Hospitality biz gaining traction post-COVID.
7. Balance Sheet
| Year | Equity | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY22 | ₹364 Cr | ₹10,053 Cr | ₹2,855 Cr | ₹15,666 Cr |
| FY25 | ₹364 Cr | ₹15,341 Cr | ₹3,300 Cr | ₹22,715 Cr |
- Borrowings increased ~16% in FY25 (likely for new land banking).
- Debt still low relative to peers.
- Strong reserve base = self-funded dreams.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹-2,383 Cr | ₹1,739 Cr | ₹709 Cr | ₹64 Cr |
| FY25 | ₹2,163 Cr | ₹-2,392 Cr | ₹200 Cr | ₹-29 Cr |
- Operating cash flow rebounded strong.
- Investment cash flow shows aggressive land acquisition.
- Caution: cycles matter. Bad launches = bad liquidity.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 16% | 15% | 18% |
| ROE % | 15% | 15% | 14.7% |
| Debtor Days | 96 | 17 | 8 |
| Inventory Days | 6,239 | – | – |
| Cash Conversion Cycle | 96 | 17 | 8 |
- Huge drop in debtor days = good collections
- Inventory days = comedy gold (under-construction hoard)
- ROCE 18% = elite tier for real estate
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Revenue | ₹5,286 Cr |
| EBITDA | ₹3,103 Cr |
| EBITDA Margin | 59% |
| PAT | ₹2,226 Cr |
| EPS | ₹61.21 |
- Luxury projects = fat margins
- They don’t just build… they extract margin like rent is oxygen
11. Peer Comparison
| Company | P/E | ROCE | OPM % | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|
| DLF | 45 | 6.5% | 26% | ₹8,000 Cr | ₹4,578 Cr |
| Lodha | 51 | 15.6% | 29% | ₹13,779 Cr | ₹2,764 Cr |
| Oberoi | 30.5 | 17.7% | 59% | ₹5,286 Cr | ₹2,226 Cr |
- Oberoi has the highest OPM in the real estate universe.
- But sales base smaller than Lodha and DLF.
12. Miscellaneous – Shareholding, Promoters
| Holder | Share % |
|---|---|
| Promoters | 67.71% |
| FIIs | 19.96% |
| DIIs | 10.19% |
| Public | 2.12% |
- Promoters are in control.
- Strong FII/DII participation = institutional trust
- Public barely has a say (and maybe that’s good for luxury design).
13. EduInvesting Verdict™
Oberoi Realty is like the Louis Vuitton of Mumbai real estate—premium, aspirational, and priced accordingly. Its insane margins, fortress-like balance sheet, and disciplined launches make it a rarity. But risks remain: slowdown in luxury housing, Mumbai’s saturated skyline, and land acquisition cost inflation.
If the Mumbai elite keeps buying ₹10 Cr flats with 0 parking, Oberoi stays golden. If not… Juhu’s Hotel Horizon may become a haunted story.
Metadata
– Written by EduInvesting Analyst | 15 July 2025
– Tags: Oberoi Realty, Mumbai Real Estate, CIRP, Hotel Horizon, Luxury Housing, FY25 Results, Real Estate Stocks, EduInvesting Analysis
