Oberoi Realty (OBEROIRLTY)
CyclicalFairStock Score: 79/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,846 |
| Market Cap | ₹67,120.98 Cr |
| P/E Ratio | 25.51 |
| ROCE | 17.73% |
| ROE | 14.25% |
| Dividend Yield | 0.43% |
| Profit Growth | 28.9% |
| Debt/Equity | 0.16 |
| Sales Growth | 31.7% |
| Free Cash Flow | ₹-229 Cr |
| Promoter Holding | 67.71% |
| 52-Week Range | ₹1,391.2 — ₹1,985 |
| Sector | Realty |
| Book Value | ₹492.89 |
Strengths
- Very low leverage: Debt/Equity of 0.18 and Piotroski F-score of 8/9 indicate a sound balance sheet.
- High promoter holding of 67.71% aligns management interests with minority shareholders.
- Respectable returns: ROE of 14.25% and ROCE of 17.73% for a real estate developer.
- 5-year revenue CAGR of 20.82% demonstrates proven long-term growth capability.
- Altman Z-Score of 2.82 suggests the company is not in immediate distress.
Concerns
- Recent performance is weak: sales declined 0.86% and net profit declined 6.06% year-on-year.
- Free cash flow is negative at ₹229 Cr, reflecting heavy project-related outflows.
- Valuation is demanding: P/E 24.55, P/B 3.95, and EV/EBITDA 90.86, far above the Graham Number of ₹773.28.
- Dividend yield of only 0.53% offers little income support while waiting for price to reflect value.
AI Analysis
As a value investor, I first ask whether the business is stable and honest. Oberoi Realty, with 67.71% promoter holding, has low debt-to-equity of 0.18 and a Piotroski F-score of 8/9, so the balance sheet is sound. Returns are decent: ROE 14.25%, ROCE 17.73%. The 5-year revenue CAGR of 20.82% shows the company can grow, but the latest year tells me real estate is a cyclical business. Sales are down 0.86%, profit is down 6.06%, and free cash flow is negative at ₹229 Cr. This is not unusual if new projects are being built, but I cannot ignore it. Now to valuation. At ₹1,707.70, the P/E is 24.55 and P/B is 3.95. The Graham Number, computed from earnings and book value, is only ₹773.28, which means the margin of safety is clearly negative. Even EV/EBITDA at 90.86 looks extreme, though real estate EBITDA needs careful handling. The dividend yield of 0.53% is minimal, so I am not being paid to wait. Oberoi is a quality Mumbai-focused developer, but quality must be bought at a reasonable price. Mr. Market is currently pricing in years of perfect execution. In true Graham fashion, I would rather miss an opportunity than overpay. I will watch for earnings growth to catch the valuation or a better price closer to book value. Until then, Oberoi Realty stays on my watchlist, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer