SDL has slowed down new launches and focus is on monetizing existing unsold area (14.8mn sqft). Cash flows have been a drag due to last mile completion of Residential/Lease assets and lower quantum of contractual advances. Whilst residential segment is pain for sector, SDL has shifted focus to <Rs 20mn ticket size which continues to do well. Cash flows run rate recovery, pickup in demand and debt reduction shall lead to re-rating. We maintain BUY. Key risks: (1) Weak order inflow in the contracting business, (2) Muted collection momentum and (3) Capex on land bank addition despite having robust development inventory. Sobha (SDL) delivered Rev/EBIDTA beat (7.5/15%) but high interest cost and deferred asset write down (shift to new tax regime) resulted in PAT miss (8.4%). Operating cash flow on 9MFY20 saw sharp fall despite steady collections and pre-sales. Despite this we believe affordable segment recovery will play out and operating cash flows to normalize from 1QFY21E. We maintain BUY with a TP of Rs 590/sh