Oberoi Realty reported a top-line at Rs7.99bn in FY14 was down 24% YoY (FY13 topline of Rs10.5bn). This was due to delay in commencement of construction (stuck for 12 months) of project Esquire. We were expecting project Esquire to commence revenue contribution in 4QFY14 (based on Mngt interaction). However the same has moved to 4QFY15 (the prime reason for our cut in FY15E estimates). Similar delays in projects Oasis (Worli) and Exotica (Mulund) have led us to cut FY16 estimates). However, with greater visibility of execution now, we are confident of launches and execution of these projects leading to significant topline and PAT growth over next 3 years.
According to BOFA-ML, Oberoi is expected to report an EPS of Rs 14.23 & 20.89 for FY 2015, 2016 respectively. 12 month Stock Target price is Rs 285.
