Sobha Ltd.

NSE: SOBHA | BSE: 532784 | ISIN: INE671H01015 | Industry: Realty
| Mid-range Performer
1601.7000 16.00 (1.01%)
NSE Jun 17, 2025 15:31 PM
Volume: 301.0K
 

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Sobha Ltd.
21 May 2019
1601.70
1.01%
HDFC Securities
SDL has ~17.5mn sqft of unsold area in ongoing projects and expects to add 4.2mn sqft from new projects in the pipeline. A well diversified product mix across different regions augurs well for pre-sales recovery. Brand pull will certainly aid pre-sales efforts. Despite capex commitment of Rs 10bn we expect consolidated net D/E to reduce to 0.9x by FY21E (vs. 1.09x now). The contracting business is seeing good growth with an order book of Rs 26bn. We maintain BUY. Key risks: (1) Further deterioration in NBFC liquidity, (2) Higher interest rate, (3) Weak order inflow in the contracting business; and (4) Delay in regulatory approvals. We maintain BUY post a robust quarter. Our SOTP-based TP has increased to Rs 652 (vs Rs 646 earlier). We have increased our EPS estimate by 3/3.3% for FY20/21E.
Geojit BNP Paribas downgraded Sobha Ltd. to Hold with a price target of 1671.0 on 04 Jun, 2025.
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