Table of Contents
Company Overview of Oberoi Realty Ltd
Oberoi Realty Limited is a company based in India that specialises in real estate development. The company is involved in creating residential, commercial, retail, and social infrastructure projects. It operates through two main segments: Real Estate and Hospitality. In the Real Estate segment, the company focuses on developing and selling residential properties as well as leasing commercial properties. The Hospitality segment is responsible for owning and running a hotel.
Oberoi Realty Limited has completed around 43 projects in various locations in Mumbai, totaling approximately 9.34 million square feet. Some of its residential projects include Maxima by Oberoi Realty, Oberoi Splendor, Prisma by Oberoi Realty, and others. Commercial projects by the company include Oberoi Chambers, Commerz, and Commerz II, while its retail project is the Oberoi Mall.
Company Overview of Godrej Properties Limited
Godrej Properties Limited, an India-based company, specializes in real estate construction, development, and related activities. The company focuses on developing real estate properties under the Godrej brand. Some of its prominent projects include Godrej Avenues, Godrej Reserve, Godrej Icon, Godrej Air – Phase 1, Godrej 101, Godrej United, Godrej Platinum, and Godrej Two.
Godrej Properties has a presence in various regions including Mumbai Metropolitan Region (MMR), National Capital Region, Pune, Bangalore, Kolkata, Ahmedabad, Nagpur, Chennai, and Chandigarh.
The Stock performance of Oberoi Realty
The table below displays the month-by-month stock performance of Oberoi Realty Ltd for the past year.
Month | Return (%) |
Jan-2024 | -8.14 |
Feb-2024 | 1.48 |
Mar-2024 | 9.18 |
Apr-2024 | 0.57 |
May-2024 | 22.95 |
Jun-2024 | -8.27 |
Jul-2024 | 3.93 |
Aug-2024 | -4.97 |
Sep-2024 | 6.3 |
Oct-2024 | 3.32 |
Nov-2024 | 1.39 |
Dec-2024 | 14.77 |
The Stock performance of Godrej Properties
The table below displays the month-by-month stock performance of Godrej Properties Ltd for the past year.
Month | Return (%) |
Jan-2024 | 17.97 |
Feb-2024 | 0.93 |
Mar-2024 | -4.16 |
Apr-2024 | 15.12 |
May-2024 | 4.86 |
Jun-2024 | 12.36 |
Jul-2024 | -2.14 |
Aug-2024 | -10.69 |
Sep-2024 | 7.5 |
Oct-2024 | -9.28 |
Nov-2024 | -4.27 |
Dec-2024 | -0.15 |
Fundamental Analysis of Oberoi Realty
Oberoi Realty Ltd is a prominent real estate development company based in Mumbai, India. Established in 1998, it has gained recognition for creating high-quality residential, commercial, and hospitality projects. The company focuses on sustainable and innovative design, delivering luxurious living and working spaces that enhance the urban landscape. With a commitment to excellence, Oberoi Realty has received numerous awards and accolades for its projects, reflecting its dedication to quality and customer satisfaction.
The stock, priced at ₹2,255.20, has a market capitalization of ₹81,999.58 crore and a book value of ₹13,844.41. With a 1-year return of 54.57% and a strong 5-year CAGR of 33.80%, it demonstrates robust growth, supported by an impressive 5-year average net profit margin of 36.50%.
- Close Price ( ₹ ): 2255.20
- Market Cap ( Cr ): 81999.58
- Dividend Yield %: 0.18
- Book Value (₹): 13844.41
- 1Y Return %: 54.57
- 6M Return %: 25.43
- 1M Return %: 9.15
- 5Y CAGR %: 33.80
- % Away From 52W High: 3.92
- 5Y Avg Net Profit Margin %: 36.50
Fundamental Analysis of Godrej Properties
GODREJPROP, also known as Godrej Properties Limited, is a prominent real estate development firm in India. Established as a part of the renowned Godrej Group, the company focuses on delivering innovative and sustainable residential, commercial, and township projects. With its commitment to quality, the firm combines the latest technology and design practices, ensuring that their developments meet high standards and cater to diverse customer needs. Over the years, GODREJPROP has garnered numerous awards and accolades for its achievements in the real estate sector.
The stock, priced at ₹2,734.10, has a market capitalization of ₹82,346.58 crore and a book value of ₹10,301.44. It delivered a 1-year return of 33.22% despite recent declines. With a 5-year CAGR of 23.16% and an average net profit margin of 8.83%, it shows steady long-term growth.
- Close Price ( ₹ ): 2734.10
- Market Cap ( Cr ): 82346.58
- Book Value (₹): 10301.44
- 1Y Return %: 33.22
- 6M Return %: -17.91
- 1M Return %: -3.68
- 5Y CAGR %: 23.16
- % Away From 52W High: 24.45
- 5Y Avg Net Profit Margin %: 8.83
Financial Comparison of Oberoi Realty and Godrej Properties
The table below shows a financial comparison of Oberoi Realty Ltd and Godrej Properties Ltd.
Stock | OBEROIRLTY | GODREJPROP | ||||
Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
Total Revenue (₹ Cr) | 4513.61 | 4827.62 | 5451.74 | 3039.0 | 4361.96 | 5546.20 |
EBITDA (₹ Cr) | 2432.68 | 2741.7 | 3285.04 | 993.64 | 1196.66 | 1856.00 |
PBIT (₹ Cr) | 2392.93 | 2694.18 | 3219.12 | 969.5 | 1152.1 | 1790.86 |
PBT (₹ Cr) | 2223.88 | 2475.74 | 3008.11 | 795.27 | 999.99 | 1631.13 |
Net Income (₹ Cr) | 1904.54 | 1926.6 | 2322.13 | 571.39 | 725.27 | 1388.79 |
EPS (₹) | 52.38 | 52.99 | 63.86 | 20.55 | 26.09 | 49.95 |
DPS (₹) | 4.0 | 4.0 | 10.00 | 0.0 | 0.0 | 0.00 |
Payout ratio (%) | 0.08 | 0.08 | 0.16 | 0.0 | 0.0 | 0.00 |
Points to be noted:
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of Oberoi Realty and Godrej Properties Limited
The table below shows a dividend paid by the company.
Oberoi Realty | Godrej Properties Limited | ||||||
Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
18 Oct, 2024 | 4 Nov, 2024 | Interim | 2 | 30 Apr, 2015 | 27 July, 2015 | Final | 2 |
22 Jul, 2024 | 01 Aug, 2024 | Interim | 2 | 2 May, 2014 | 28 July, 2014 | Final | 2 |
14 May, 2024 | 24 Jun, 2024 | Final | 2 | 9 May, 2013 | 2 July, 2013 | Final | 4 |
9 May, 2024 | 22 May, 2024 | Interim | 2 | 7 May, 2012 | 19 July, 2012 | Final | 3 |
24 Jan, 2024 | 2 Feb, 2024 | Interim | 2 | 7 May, 2011 | 14 July, 2011 | Final | 4.5 |
27 Oct, 2023 | 8 November, 2023 | Interim | 2 | 17 May, 2010 | 8 July, 2010 | Final | 4 |
16 May, 2023 | 21 Jun, 2023 | Final | 4 | 17 May, 2010 | 8 July, 2010 | Final | 4 |
26 May, 2022 | 07 Jul, 2022 | Final | 3 | 17 May, 2010 | 8 July, 2010 | Final | 4 |
Advantages and Disadvantages of Investing Oberoi Realty Ltd
Oberoi Realty Ltd
The primary advantage of Oberoi Realty Ltd lies in its reputation for delivering high-quality residential, commercial, and retail projects, supported by strong execution capabilities and a focus on premium real estate development in prime locations.
- Strong Market Position: Oberoi Realty is a leader in India’s premium real estate market, known for its luxury residential projects and iconic commercial developments, catering to affluent customers and corporate clients.
- Diverse Portfolio: The company has a balanced portfolio comprising residential, commercial, retail, and hospitality projects. This diversification ensures consistent revenue streams and reduces dependence on a single segment.
- Focus on Quality and Innovation: Oberoi Realty emphasizes superior construction quality and innovative design, maintaining a competitive edge and establishing itself as a trusted brand in the real estate sector.
- Prime Locations: The company strategically develops projects in high-demand locations, ensuring strong demand, premium pricing, and high returns on investments, benefiting both the company and its customers.
- Financial Resilience: With robust financial management, Oberoi Realty maintains low debt levels and strong cash flows, enabling it to weather market fluctuations and sustain long-term growth.
The main disadvantage of Oberoi Realty Ltd is its reliance on the high-end real estate market, making it vulnerable to economic fluctuations and changes in demand for premium properties during periods of economic slowdown or market uncertainty.
- Economic Sensitivity: Oberoi Realty’s focus on premium real estate ties its performance to economic conditions. During downturns, demand for high-end properties can decline significantly, affecting the company’s revenue and profitability.
- High Competition: The luxury real estate segment faces intense competition from other established developers. This pressure challenges Oberoi Realty to maintain its market share and premium positioning.
- Regulatory Risks: The real estate sector is subject to stringent regulations and policy changes, which can delay project approvals and impact operational efficiency and financial performance.
- Geographic Concentration: The company primarily operates in Mumbai and nearby regions. This limited geographic diversification exposes it to regional market risks, such as local economic downturns or real estate policy changes.
- Capital-Intensive Operations: Real estate development requires significant capital investment. Any delays in project completion or sales can strain financial resources and impact the company’s liquidity and cash flows.
Advantages and Disadvantages of Investing in Godrej Properties
Godrej Properties Ltd
The primary advantage of Godrej Properties Ltd is its strong brand reputation, backed by the Godrej Group, combined with its innovative and sustainable real estate developments that cater to diverse customer needs across residential, commercial, and township projects.
- Reputed Brand Name: As part of the Godrej Group, Godrej Properties benefits from a trusted and well-established brand, enhancing its credibility and attracting customers across various real estate segments.
- Diverse Project Portfolio: The company offers a wide range of projects, including residential, commercial, and mixed-use developments, ensuring consistent revenue streams and catering to diverse market demands.
- Focus on Sustainability: Godrej Properties emphasizes green building initiatives and sustainable practices, appealing to environmentally conscious customers and aligning with global trends in eco-friendly construction.
- Pan-India Presence: With projects across major cities like Mumbai, Pune, Bangalore, and Delhi-NCR, Godrej Properties enjoys a geographically diversified presence, reducing dependency on any single market.
- Robust Financials and Execution: The company’s strong financial position and efficient project execution capabilities enable timely delivery and consistent growth, solidifying its position as a leader in India’s real estate market.
The main disadvantage of Godrej Properties Ltd is its reliance on the real estate market, which is sensitive to economic fluctuations and regulatory changes, potentially affecting project timelines, sales, and profitability during unfavorable market conditions.
- Economic Dependency: The company’s performance is tied to macroeconomic factors. Economic slowdowns or reduced buyer sentiment can directly impact sales and cash flows in the highly cyclical real estate industry.
- Project Delays: Real estate projects are often subject to delays due to regulatory approvals, construction challenges, or supply chain disruptions, which can increase costs and affect customer satisfaction.
- High Competition: Godrej Properties faces strong competition from other established developers in both premium and affordable housing segments, challenging its market share and pricing power.
- Capital-Intensive Business: Real estate development requires significant investment. Delays in project completion or sales can strain the company’s financial resources and affect profitability.
- Regulatory Risks: Changes in government policies, taxes, or real estate regulations can impact operations and project timelines, creating uncertainties in planning and execution.
How to Invest in Godrej Properties and Oberoi Realty Ltd Stocks?
Investing in Godrej Properties, and Oberoi Realty Ltd stocks requires understanding their market performance, growth potential, and the dynamics of the industries they operate in. Utilizing a reliable broker like Alice Blue ensures seamless transactions and informed investment decisions.
- Open a Demat Account: Start by opening a Demat and trading account with Alice Blue, a trusted broker offering advanced tools, low brokerage fees, and access to these stocks on major exchanges like NSE and BSE.
- Research Financials and Industry Trends: Analyze the financial health and growth potential of each company. For Olectra, focus on EV advancements; for Godrej and Oberoi Realty, assess real estate demand and their project execution capabilities.
- Monitor Stock Performance: Regularly track the performance of these stocks and the broader industry trends. Staying updated ensures better decision-making for buying or selling based on market conditions.
- Diversify Investments: Spread your investments across sectors, including real estate and EV stocks, to minimize risks and capitalize on diverse growth opportunities, balancing stability with aggressive growth potential.
- Leverage Broker Insights: Use Alice Blue’s research tools, analytics, and expert insights to stay informed about market movements and optimize your portfolio for maximum returns with these stocks.
Oberoi Realty vs. Godrej Properties : Conclusion
Oberoi Realty Ltd stands out for its premium real estate developments, strong execution capabilities, and financial resilience. With a focus on luxury residential and commercial projects in prime locations, it caters to high-net-worth customers, ensuring consistent growth and profitability.
Godrej Properties Ltd leverages its strong brand reputation and pan-India presence to deliver innovative and sustainable real estate projects. Its diverse portfolio and commitment to eco-friendly practices make it a preferred choice for customers seeking quality housing and commercial spaces across key metropolitan markets.
Best Real Estate Sector Stocks – Oberoi Realty vs. Godrej Properties : FAQs
Oberoi Realty Ltd is a prominent real estate development company in India, known for its residential, commercial, and hospitality projects. Established in 1998, it focuses on premium developments in Mumbai and surrounding areas, emphasizing quality, innovation, and sustainable practices in its architecture and design.
Godrej Properties Ltd is a leading real estate development company in India, part of the Godrej Group. It focuses on residential, commercial, and township projects, blending innovation and sustainability. Established in 1990, the company is known for delivering high-quality properties across various cities.
Real estate stocks represent companies involved in buying, developing, and managing properties such as residential, commercial, retail, and industrial spaces. These stocks benefit from economic growth, rising property demand, and rental income, offering investors opportunities to gain exposure to the real estate market without directly owning properties.
Vikas Oberoi serves as the Chairman and Managing Director of Oberoi Realty Ltd., overseeing the company’s strategic direction and operations. Additionally, Pankaj Gupta holds the position of Chief Executive Officer for the Commercial Real Estate division, focusing on business strategy, leasing, and expansion within the commercial sector.
The main competitors for Oberoi Realty and Godrej Properties include DLF Ltd, Lodha Group, Brigade Enterprises, and Prestige Estates Projects. These firms operate in similar residential, commercial, and luxury real estate segments, competing for market share in India’s premium and metropolitan property markets.
As of January 2025, Godrej Properties Ltd has a market capitalization of approximately ₹82,220 crore. While Oberoi Realty Ltd stands at around ₹81,999.58 crore. Market capitalization reflects a company’s market value based on its current share price and total outstanding shares.
Oberoi Realty focuses on key growth areas such as luxury residential developments, premium commercial spaces, and retail projects in prime locations. It emphasizes expanding its portfolio in Mumbai and nearby regions, leveraging high demand and financial resilience to explore opportunities in hospitality and mixed-use developments.
Godrej Properties focuses on expanding its residential and commercial real estate portfolio across major cities, emphasizing sustainable and green building practices. Key growth areas include large-scale township projects, luxury housing, and strengthening its presence in high-demand regions like Mumbai, Pune, Bangalore, and Delhi-NCR, supported by its trusted brand reputation.
Oberoi Realty Ltd offers a higher dividend yield compared to Godrej Properties Ltd. In the past 12 months, Oberoi Realty declared an equity dividend totaling ₹10.00 per share, resulting in a dividend yield of approximately 0.43% at the current share price. Therefore, for investors seeking dividend income, Oberoi Realty provides better returns.
For long-term investors, Oberoi Realty offers stability with its focus on luxury projects, financial resilience, and high-profit margins. Godrej Properties, backed by a strong brand and diverse portfolio, provides growth potential in residential and commercial segments. The choice depends on priorities: stability with Oberoi or broader growth with Godrej.
Oberoi Realty generates most of its revenue from luxury residential projects and premium commercial spaces, catering to high-net-worth individuals and corporate clients. Godrej Properties derives revenue from a balanced mix of residential and township developments, with contributions from commercial real estate in metropolitan and tier-1 cities.
Oberoi Realty is more profitable than Godrej Properties, driven by its focus on high-margin luxury residential and commercial projects, resulting in superior profit margins. While Godrej Properties benefits from a diverse portfolio, its lower margins reflect higher costs and broader market competition compared to Oberoi Realty’s premium focus.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.