Mumbai Realty Face-Off: Kalpataru’s IPO Journey vs Oberoi Realty’s Market Strength

The Mumbai Real Estate Showdown: Kalpataru vs Oberoi Realty

In the bustling corridors of Mumbai’s real estate market, two giants—Kalpataru Ltd and Oberoi Realty—find themselves at a pivotal crossroads. As Kalpataru launches its much-anticipated IPO, the city’s investors and homebuyers are keenly watching how these two titans stack up against each other in terms of scale, profitability, and value.

Kalpataru’s IPO: A Measured Start

Kalpataru Ltd, a prominent name in Mumbai’s property landscape, recently opened its ₹1,590 crore IPO, aiming to repay debts and fuel future growth. Despite a strong anchor book featuring stalwarts like the Government of Singapore and major Indian mutual funds, the IPO saw only a 14% subscription by Day 2, reflecting cautious investor sentiment. The issue, priced between ₹387-414 per share, closes on June 26, with listing slated for July 1.

Saleable Area: Scale vs Value

Both Kalpataru and Oberoi Realty have carved their niches in the Mumbai Metropolitan Region (MMR). Kalpataru currently boasts a larger saleable area—2.03 million sq. ft.—compared to Oberoi Realty’s 1.03 million sq. ft. However, Oberoi Realty’s focus on premium residential and commercial spaces in prime locations like Goregaon and Borivali translates into a higher sales value of ₹3,969 crore, outpacing Kalpataru’s ₹2,727 crore.

Profitability: Oberoi Realty’s Clear Lead

When it comes to profitability, Oberoi Realty stands tall. While Kalpataru turned EBITDA-positive in 9MFY25 with ₹101 crore after years of losses, Oberoi Realty reported a robust ₹810 crore profit before tax in Q3FY25. The latter’s operating margin also improved to 60%, up from 50.9% in the previous period, underscoring its operational efficiency and strong market position.

Valuation: Turnaround vs Stability

On the valuation front, Kalpataru’s turnaround story comes at a cost. As of 9MFY25, Kalpataru posted a modest net profit of ₹5.5 crore, while Oberoi Realty delivered a staggering ₹2,367 crore. Kalpataru’s post-issue price-to-earnings (P/E) ratio stands at a lofty ₹1,160, reflecting its nascent profitability and the market’s cautious optimism. In contrast, Oberoi Realty’s P/E ratio of 40x, based on an EPS of ₹49, trades below the industry average, making it a more stable and attractive proposition for value-conscious investors.

The Road Ahead

Kalpataru’s IPO marks a critical juncture in its journey from a loss-making entity to a potential turnaround story. Yet, Oberoi Realty’s consistent performance, premium positioning, and strong financials give it a distinct edge in Mumbai’s fiercely competitive real estate arena.

For those tracking Mumbai’s property market, this face-off is more than just numbers—it’s a tale of ambition, resilience, and the relentless pursuit of market leadership.