Sobha Ltd.

NSE: SOBHA | BSE: 532784 | ISIN: INE671H01015 | Industry: Realty
| Mid-range Performer
1585.7000 23.00 (1.47%)
NSE Jun 16, 2025 15:31 PM
Volume: 178.3K
 

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Sobha Ltd.
14 Aug 2019
1585.70
1.47%
HDFC Securities
SDL has ~17.1mn sqft of unsold area in ongoing projects and expects to add 10.7mn sqft from new projects in the pipeline, over the coming quarters. Whilst SDL has only 0.3 mnsqft of unsold completed inventory worth Rs 1.2bn we remain cautious on land bank addition of Rs 1.5bn during 1QFY20 (when SDL already has high unsold under construction inventory). Net D/E is expected to reduce to 1.1x by FY20E as there were delays in agreement registration in two projects, which resulted in slower collections. The contracting business is seeing good growth with an order book of Rs 22.3bn. We maintain BUY. Key risks: (1) Further deterioration in NBFC liquidity, (2) Weak order inflow in the contracting business, (3) Dip in collection momentum and (4) Any aggressive land bank addition. We maintain BUY post a stable quarter. Our SOTP-based TP is maintained at Rs 652. We have increased our EPS estimate by 2/2.1% 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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