Oberoi realty has quite a brand name in Mumbai and its projects always attract a premium. After a great annual result with over 50% sales increase the price zoomed 17% in one day. The stock continued to show strength with steady increase reaching 360 levels. That is a annualized 70% return. However post demonetization saw a strong correction retracing to 260 levels in 11 trading sessions. After which the price is showing a slow but steady rise.
Fundamentally the stock is great with an CAGR of 20% over 10 years and a slew of under construction projects in Mumbai. Also they are extending to Noida and Bangalore. Technically at the current levels both the MACD and Stoch are showing oversold. This is a good opportunity to begin adding this to your portfolio. Recently there has been a number of bulk purchases in the open market.
I believe, in the next 2 years real estate stocks such as Oberoi will give excellent returns.
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