Oberoi Realty-A simple real estate story

Hello, I have attempted to do conservative valuation of the company based on FY23 financial statements.

My story is based on:

  • Honest, intelligent & “conservative with debt” management led by Vikas Oberoi (takes 0 salary)
  • Strong brand and focused on Mumbai (real estate is a localized business and hard to scale successfully and sustainably)
  • High integrity hence numbers are trustworthy

My valuation is:

FY23 Multiplier Value Comments
Rental income 359 15 5385 Valuing malls & office business at 15 times FY23 rental income
Hospitality 156 10 1560 Valuing hotel business at 10 times FY23 revenue
Projects - Inventory 8543 1 8543 BS > Current assets > Inventories
Inv + Cash 1744 1 1744 Current Investments + N-Current Investments + Cash + Bank balance
Value of properities 8893 1 8893 4031 = Capital WIP (BS > Non-current assets)
195= Property, plant, equipment(BS > Non-current assets)
4667 = Fair values of the properties* (Page 129, Annual Report)
Total 26125
Per share 718 36.4 cr shares
  • properties = Commerz I, Commerz II, Oberoi International School (Goregaon), Oberoi International School (JVLR) and Oberoi

Comments welcome. What is your valuation story and numbers?

Chairman and MD of Oberoi Realty Ltd…

Good performance. Bottom line in coming qtr. will be better as inventories are ready for sale as project are completed/near completion and having occupancy certificate !

company has added new project
c7ae9f78-000b-40de-9324-5d0975a8a1b2.pdf (298.9 KB)