CBR - Oberoi Realty Full - Nikhil Bhaskar
CBR - Oberoi Realty Full - Nikhil Bhaskar
CBR - Oberoi Realty Full - Nikhil Bhaskar
• Oberoi Realty name was adapted on 22 October 2009 to Match the exact
nature of business.
• Company holds a Strong Brand and Successful Track Record in the Market
through its Contemporary Architecture, Strong project execution, and Best in
class Quality Constructions.
• The Real Estate Giant Currently has 8 Ongoing Projects and 19 planned
projects which provides a total sealable area of more than 2,316,528 Sqft.
MAJOR COMPETITORS
DLF
Delhi Land & Finance (DLF) Was Founded in 1946 By Chaudhary Raghuvendra
Singh in New Delhi. DLF works as a Commercial Real Estate Developer and is
known for its Extra Luxurious Projects around the Country
L&T
Scope & impact of the real estate industry on the Indian Economy
The real estate sector is one of the Topmost globally recognized sector, Which
majorly comprises 4 sub-sectors- Housing, Retail, Hospitality & Commercial.
Growth of Real Estate Industry is Partnered by growth in the corporate world and
the office demand including urban & semi-urban accommodations. The real
estate industry currently stands at 14th in terms of its effect on the Indian
economy be it direct, indirect, or induced.
The government of India Along with the Government of Respected states has
Established Various Initiatives to encourage development in the real estate
sector. With a plan to build 100 smart cities in the Smart City Project a Prime
Opportunity for the real estate Company is up for Grab. Major Government
Schemes for the sector are:
- 1.12 crore Houses have been Sanctioned in Urban Areas under Pardhan
Mantri Awas Yojn Further creating 1.20 Crore Jobs.
- India Formally approved 423 SEZs on 31st July 2020, Out of which 248 are
already in Operations.
COMPANY BACKGROUND
GROUP COMPANIES:
With its primary focus on Residential Projects, They hold a diversified Portfolio
Including Oberoi Mall, the Westin Mumbai Garden City & the Oberoi International
School, In Mumbai.
ECONOMICS
FACTORS AFFECTING THE DEMAND OF OBEROI
REALTY LTD. PROJECTS
DEMOGRAPHICS
INTEREST RATES
- Interest rates also have a major impact on the real estate markets. If you're
considering buying a home with a mortgage it is beneficial to research
interest rates using a mortgage calculator. Changes in interest rates can
greatly influence a person's ability to purchase a residential property. That
is because the lower interest rates go, the lower the cost to obtain
a mortgage to buy a home will be, which creates a higher demand for real
estate, which again pushes prices up.
ECONOMY
- Another key factor that affects the value of real estate is the overall health
of the economy. This is generally measured by economic indicators such as
the GDP, employment data, manufacturing activity, the prices of goods, etc.
Broadly speaking, when the economy is sluggish, so is real estate.
GOVERNMENT POLICIES
- Legislation is also another factor that can have a sizable impact on property
demand and prices. Tax credits, deductions, and subsidies are some of the
ways the government can temporarily boost demand for real estate for as
long as they are in place. Being aware of current government incentives can
help you determine changes in supply and demand and identify potentially
false trends.
FACTORS AFFECTING THE SUPPLY OF OBEROI
REALTY LTD. PROJECTS
Any change in the interest rate impacts the ability of a builder to repay loans,
and also the seller seeking home loan. High interest rates lead to the lower
supply rate of housing. When the interest rates increase, selling property
becomes a challenge for the builder due to two reason:
The implementation of RERA (Real Estate Regulatory Authority) Bill has made
mattrers tougher for builders. According to the Act, if a builder fails to deliver a
project on time, the buyer can claim a refund at 2% higher interest rate.
Moreover, there exists lack of uniformity in lending rates to these builders. The
bigger and established ones can avail loans at lower interest rates than the
smaller builders (Sinhal, 2016). Loan rates have become a bigger problem for
builders when a demographic location may not have high market value initially.
People may as a result refuse to pay high prices for that location as demanded
by builders.
UNAVAILABLITY OF AFFORDABLE LAND
3. Introducing special schemes and offers for the customers buying the products
in bulk.
4. Providing free transportation and installing charges (if any), as it also attracts
more customers to buy more.
5. Setting up dynamic pricing as it can play with the mind of buyers and helps in
generating more revenue
• Homogeneous product
Oberoi Realty Ltd. Providing similar products at cheaper rate as compare to their
competitors because company uses an economic of scale which reduces the cost
of the company and allows a company to sale the products at a lesser price.
b) Market Structure
Oberoi Realty being in Perfect Combination they need to set their prices as per
the market as in perfect Combination The suppliers can only supply what the
consumers can consume at given prices. In a perfectly competitive market
structure, the market sets the price and firms are merely price takers and thus
they will operate for as long as production costs fall below revenue.
FINANCE
FINANCIAL ANNUAL STATEMENT
LAST 5 YEAR SALES (IN CRORES)
SHAREHOLDING PATTERN
TRANSACTION ANALYSIS
OBEROI REALTY’s Total Expenditure for year 2019-20 was 282.23 Crores
Compared to 467.34Crores in 2018-19, with total Profit for year 2019-20 was
314.84Crores Compared to 453.70Crores for year 2018-19
= ((2237/1416)^1/4)-1
= 12.11%
= ((683/433)^1/4)-1
= 12.07%
Since the CAGR is positive, i.e., 12.11% and 12.07%, this means that the
company’s willing to invest in the Oberoi Realty or any project of Oberoi Realty
would do it without any hesitation as the company is offering growth in both sales
and profits from a period of 4 years. Therefore, it would be profitable to invest in
Oberoi Realty.
1. Current Ratio
Current Assets/ Current Liabilities
= 5521.87/ 1211.25
=4.55
2. Liquid Ratio
Quick Assets/ Current Liabilities
= (6845.96-5317.28)/ 1211.25
= 1.26
4. Working capital
Current Assets – Current Liabilities
=5521.87- 1211.25
= 4310.62
5. Return on Investment (ROI)
Profit before interest, tax and preference dividend/ capital employed
=418.78/6384.37
= 0.06%
2. As Oberoi realty has got the highest proprietary ratio which indicates
relationship between proprietor's fund & net assets of the company & it is good
indicator for the company as Oberoi realty is doing better than other companies
Proprietary Ratio
Shareholder’s Fund/ Total Assets
=6276.50/7595.62
=0.83
Net Profit ratio is positive which means that the company is constantly
earning profits over the years. Oberoi Realty offers high ROI along its
competitors which makes a good image of company in the eyes on
investors.
Current Ratio
Current Assets/ Current Liabilities
= 5521.87/ 1211.25
=4.55
Quick Ratio
Quick Assets/ Current Liabilities
= (6845.96-5317.28)/ 1211.25
= 2.77
2.As Quick ideal ratio 2.77 which very high which also indicates that company is
not able to utilise its liquid assets in a proper manner. Whereas DLF & L&T have
maintained good ideal ratio.
OR
= 1253.18/294.72
= 4.25210369 Crores
= 42521036.9 Lakhs
FIXED COST-A fixed cost is a cost that doesn't change with change in business
operations in the production or sale of goods. Fixed costs will be costs that must
be paid by an organization, independent of a particular business operation.
Oberoi Realty has a diverse portfolio consisting of Commercial Spaces, Sky towers,
Budget Friendly Homes, retail, hospitality, and Social Infrastructure projects.
Oberoi Realty works with a number of Reputed International & National domestic
Architects & Contractors. The Real Estate Giant Currently has 8 Ongoing Projects
and 19 planned projects which provides a total sealable area of more than
2,316,528 Sqft.
YEAR OF LAUNCH
PROJECT LAUNCH DATE
OBEROI MALL APRIL 15, 2008
FIRST HOUSING SECTOR OCTOBER 29, 2010
FIRST SKY TOWER OCTOBER 30, 2015
FIRST COMMERCIAL COMPLEX MARCH 30, 2016
MARKET SEGMENTATION
Oberoi Realty Ltd. is engaged in Real Estate. It works through the accompanying 5
segments : Residential, Office Space, Hospitality, Retail, Social Infra .
IMPACT OF COVID-19
Revenue for FY20 at Rs. 2,285.98 crore as against Rs. 2,661.35 crore for
FY19
Profit Before Tax (PBT) for FY20 at Rs. 968.89 crore as against Rs. 1,177.62
crore for FY19 and Profit After Tax (PAT) at Rs. 689.33 crore as against Rs.
816.93 crore for FY19
Total area booked for Q4FY20 is 1.27 lakh sq. ft. as against 1.45 lakh sq. ft.
booked in Q4FY19 and the total value is Rs. 230.28 crore for Q4FY20 as
against Rs. 319.14 crore for Q4FY19
BRAND POSITIONING
Brand positioning as defined by Kotler “the act of designing the company’s
offering and image to occupy a distinctive place in the mind of the target
market”. In simple words, brand positioning is how a brand is different from
its competitors and how or where, it makes place in the minds of the
consumers.
The market leader is actually what the name says, the head of the market
where the brand exists. It's imperative to call attention to that the market
leader isn't really the first who enters into the market. Those are pioneer
brands, and they can be outperformed by different brands that enter the
market later and take the market leader position.
Oberoi Realty is a Market Leader With its Board Driven Governance
Structure & Maintain Disciplined Approach to Deliver Sustainable Growth &
Oberoi Realty Ranked No. 1 in ‘Best for Disclosure & Transparency’ and
‘Best for Investor Relations’ in Corporate Governance Poll 2016 conducted
by Asiamoney
Evaluate
Delivery of Unit
Post Possession
STRENGTHS
1. Strong presence in Mumbai
2. Established brand and reputation
3. Strong base of client in commercial
4. Financial stability of tenants
5. Strong workforce
WEAKNESSES
1. Volatility in prices of, or shortages of, key building materials;
2. Largely depend on third parties, Joint ventures, Contractors on whom they
have limited control
OPPORTUNITIES
1. Continuous focus on large development in Mumbai
THREATS
1. Extensive regulation include various Environmental laws regulation , which
may be more stringent in near future
2. Constraint of fund
3. Changes to the FSI/TDR regime in Mumbai
3. Terrorist attacks which may affect the steady business development.
4. Changing and downturn in Economic condition of the country
ORGANISATIONAL BEHAVIOUR
Vision of the Company
The vision of our company is an actionable, purpose-led ideal that has a real and
significant bearing on our deliveries and our conduct. We are committed to
ensuring that our offerings are revolutionary, ahead of the times, benchmarked
against best global trends & practices and built around our discerning customers'
needs. We ensure that the ecosystem we operate in, the society around and all
people who experience, engage or align with any aspect of the spaces we create,
truly feel the differentiation and positive impact on quality of life.
INSTAGRAM
Oberoi Realty has 8405 followers on Instagram. The company has posted 719
posts, 4 IGTV videos on its Instagram handle.
THEME OF POSTS
The company’s social media timeline majorly comprises of posts about
CURRENT WEBSITE
Current Website of Oberoi Realty is very Basic. With just the Required information
on it. The Company’s website features all the projects of the company as per the
locations.