Why is Oberoi Realty falling/rising?

Aug 04 2025 09:14 PM IST
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As of 04-Aug, Oberoi Realty Ltd. is currently priced at 1,611.40, showing a slight increase but underperforming with a year-to-date return of -30.08%. Despite a strong ability to service debt and healthy long-term growth, recent negative earnings and declining investor confidence have resulted in a cautious outlook for the stock.
As of 04-Aug, Oberoi Realty Ltd. is experiencing a price increase, currently at 1,611.40, reflecting a rise of 22.0 points or 1.38%. The stock has shown a trend reversal after three consecutive days of decline, although it is still trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite today's positive movement, the stock has underperformed in the short term, with a 1-week return of -0.96% and a 1-month return of -13.77%. The company has a low Debt to EBITDA ratio of 0.96 times, indicating a strong ability to service debt, and has demonstrated healthy long-term growth with net sales increasing at an annual rate of 22.67%. However, the stock has faced challenges, including a fall in EPS of -2.75% and negative results for the last two consecutive quarters, which have contributed to a negative sentiment among investors.

Broader market context indicates that while Oberoi Realty has struggled with a year-to-date return of -30.08%, the benchmark Sensex has gained 3.69% in the same period. This stark contrast highlights the stock's underperformance relative to the broader market. The recent decline in investor participation, with delivery volume falling by 43.57% against the 5-day average, suggests a lack of confidence among retail investors. Despite high institutional holdings at 30.16%, which typically indicates a more stable investment base, the overall negative results and high valuation metrics have led to a cautious outlook for the stock.
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