Kalpataru vs Oberoi Realty: Here's how two Mumbai based real estate players stack against each other

Kalpataru Ltd IPO subscribed 35% on Day 2 afternoon, with retail portion subscribed 77%, qualified institutions 18% and Non-Institutional portion by 42% The issue aims to raise ₹1,590 crore and is an entirely fresh issue, with an objective of repayment of its debt worth ₹1,190 crore and other general purposes. The company on Monday raised nearly ₹708 crore from anchor investors Govt. of Singapore, SBI Mutual Fund, ICICI Prudential Fund, 360 One AMC and more. The IPO will close on June 26, and the shares are expected to list on July 1.

Saleable Area

Kalpataru and Oberoi Realty are two prominent players focused on the Mumbai Metropolitan area. Oberoi Realty operates premium residential and commercial office spaces in Mumbai. As of 9MFY25, Kalpataru Ltd holds a saleable area of 2.03 million sq. feet as compared to 1.03 million square feet of Oberoi Realty. However, Oberoi Realty holds sales value of ₹3,969 crore as compared to ₹2,727 crore of Kalpataru Ltd. Oberoi Realty is known for its luxurious projects in key prime areas of the Mumbai Metropolitan region like Goregaon, Borivali and upcoming projects in Thane and beyond.

Profitability

In terms of profitability metrics, Oberoi Realty holds the upper hand as compared to Kalpataru. As of 9MFY25, Kalpataru Ltd became EBITDA positive of ₹101 crore after reporting EBITDA loss for FY24, FY23 and FY22 at ₹78 crore, ₹49 crore and ₹35.9 crore. On the other hand, Oberoi Realty reported strong numbers with ₹810 crore of profit before tax in Q3FY25. Meanwhile, the operating margin for the company also improved to 60% from 50.9% in 9MFY24.

Valuation

As of 9M FY25, Kalpataru Ltd remains bottomline positive at ₹5.5 crore vs ₹2,367 crore of Oberoi Realty. The Kalpataru Ltd’s price-to-earnings ratio stood at ₹1,160 on a post-issue basis, while the Oberoi Realty’s P/E ratio stands at 40x for 9MFY25 EPS of ₹49 per share. trades well below the industry average of 41. In valuation terms, Kalpataru Ltd looks quite expensive as the company is in a turnaround process from a loss-making to a profitable company.