Nomura Stays Bullish on Oberoi Realty Despite HC Order
Despite the Punjab and Haryana HC restraining fresh allotments at Oberoi's 360 North Gurugram project Nomura retained Buy with a ₹2,090 target. The brokerage said the actual business impact is limited existing sales are unaffected, construction continues and the next phase launch was anyway planned for FY28-29.
Existing sales unaffected → The HC order only restricts new allotments not the hundreds of units already sold. Revenue from existing bookings continues flowing normally.
Next phase was FY28 29 anyway → Oberoi had not planned to launch new phases until FY28-29. The restraint on fresh allotments barely disrupts a launch that was two to three years away.
DTCP has previously ruled in Oberoi's favour → Haryana's own planning authority has sided with Oberoi multiple times before. Nomura sees two strong reasons proceedings could go in Oberoi's favour on July 20.
Nomura acknowledged that an adverse ruling however unlikely would have limited valuation impact but could damage Oberoi's reputation in Gurugram. For a premium real estate brand entering a new market reputation is everything buyers choose Oberoi partly for its trusted brand. Any legal cloud even temporary could slow future Gurugram project launches.
Not all legal overhangs are equal. Some are existential threatening core business. Others are temporary procedural matters with limited real impact. Investors who read this as existential sold those who read it correctly as procedural held and Nomura's analysis confirms the latter.
Nomura's Buy retention on Oberoi Realty despite an HC order taught me that legal overhangs in real estate must be evaluated by their actual business impact rather than headline fear, and that understanding whether existing sales, construction and future launches are affected is essential before making panic decisions on real estate stocks like