With recent price correction we Upgrade SDL to BUY from NEU with NAV of Rs 632/share. Adjusted for MAT credit of Rs 39mn, Sobha Developers (SDL) 3QFY18 net profit came in at Rs 495mn vs our estimate of Rs 493mn. SDL recorded 0.93mn sqft of pre-sales for 3QFY18. Pre-sales value stood at Rs 7.51bn (SDL share Rs 6.11bn), which is +92% YoY against the demonit affected 3QFY17. Cost of funds reduced to 9.74% vs 9.88% QoQ.