Maintain BUY with a NAV of Rs 500/share. Sobha Developers (SDL) 1QFY18 net profit came in 40.3% ahead of estimates. This was owing to robust revenue recognition in the real estate segment, with 74.5% contribution (+20.9% YoY growth). Led by multi-quarter high collections of Rs 7.3bn, gross/net debt reduced Rs 760/490mn QoQ to Rs 21.6/20.2bn (0.75x net D/E). With a ramp up in APMCs project capex (during FY19E), debt may inch up, though net D/E remained stable and will max out at 0.9x.