Back of the envelope workings:
Nirmal acquisition gives Oberoi access to 20,262.40 sq m land for INR 273 Cr.
This comes to aprox. 12517 per sq ft cost for Mulund west.
avg cost of construction in Mumbai, keep INR 6000 per sq ft.
So total cost of development will be 18517 per sq ft.
Current prices in Mulund West, on avg is 26900 psi (as per 99acres).
so 45% margin. Oberoi current avg OPM is 58%… to reach it, they must sell it at 8% premium psf rate at around 29256 psf, which is possible with Oberoi brand.
This project will add INR 638 Cr to topline or aprox 40 cr per quarter over next 4 years… or around 2-3% increase to Oberoi sales.
Don’t think will make much impact to stock price.
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