Oberoi Realty- Strong execution boots results :Emkay,

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Oberoi Realty

Strong execution boots results

ACCUMULATE

CMP: Rs235                                        Target Price: Rs275

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n     Q2FY12 results much above our expectations, predominantly due to higher execution of Oberoi Exquisite boosting revenue under % completion method

n     Sales booking slowed down, as expected. Company sold 1,86,036 sf in Q2FY12 against 2,10,346 sf in Q1FY12 and 1,70,399 sf our expectation

n     OBRE acquires 50% stake in Oberoi Skyz for ~Rs 2.8bn, adds Rs 3 / share to NAV. Assumption of 2.7 FSI (Parking Policy), avg. rate of Rs 37500 / sf and project timeline of FY18

n     Maintain our Accumulate rating with upgrade in TP to Rs 275. Increase in TP pertains to new acquisition only