Sobha Ltd.

NSE: SOBHA | BSE: 532784 | ISIN: INE671H01015 |Industry: Realty
|Strong Performer, Getting Expensive
Durability score
65 /100
Valuation score
37.7 /100
Momentum score
57.8 /100
Market Capitalizati...
4,600.2 Cr.
AVG Broker Target
533
PE TTM Price to Ear...
18.5
Sobha Ltd.    
07 Feb 2019
485.25
-2.63%
HDFC Securities
Maintain BUY with TP of Rs 646/share. Sobha reported Revenue/PAT miss/beat of 10/8%. EBITDA margin expanded by 31bps YoY to 20.2% (-57bps QoQ). In the absence of IND AS 115, revenue/ APAT would have been higher/(lower) by Rs 674/(89)mn respectively.
Sobha Ltd. is trading above all available SMAs
Sobha Ltd.    
07 Feb 2019
485.25
-2.63%
Nirmal Bang Institutional
Concern Over Rising Debt And Decline In Operational Cash Flow Despite the strong growth in earnings of Sobha in 3QFY19, we are concerned over the sharp decline in cash flow after income tax and interest expenses by 20% QoQ and 65% YoY to Rs191mn. Consequently, net debt increased to Rs23,999mn, an increase of 7% QoQ. The weak cash flow is partially because of rising advertising, marketing and interest expenses following pricing pressure in a weak market. We also note that sales in 3QFY19 were muted compared to earlier quarters, despite being a festival season. We have retained our Sell rating on Sobha with a target price of Rs376....
Sobha Ltd. has an average target of 533.00 from 4 brokers.
Sobha Ltd.    
07 Feb 2019
485.25
-2.63%
buy
Hold: Sobha Ltd.
ICICI Securities Limited
Sobha's topline grew 13.9% YoY to | 787.9 crore (our estimate: | 692.4 crore) led by 36.4% YoY growth in revenues from the contractual division to | 310.8 crore (our estimate: | 234.6 crore) The EBITDA margin expanded 31 bps YoY to 20.2% but was below our estimate of 21.3% on account of higher revenue share from the low-margin construction business PAT grew robustly by 30.7% YoY to | 69.8 crore (our estimate: | 65.5 crore) led by strong topline growth...
Number of FIIs/FPIs holding stock rose by 25 to 167 in Mar 2019 qtr.
Sobha Ltd.    
15 Nov 2018
485.25
-2.63%
buy
Hold: Sobha Ltd.
ICICI Securities Limited
ICICI Securities Ltd | Retail Equity Research Sobha's topline grew 1.9% YoY to | 658.7 crore (our estimate: | 681.4 crore) led by 78.0% YoY growth in revenues from contractual division to | 273.2 crore (our estimate: | 181.7 crore) The EBITDA margin expanded 198 bps YoY to 21.3%, in line with our...
Number of FIIs/FPIs holding stock rose by 25 to 167 in Mar 2019 qtr.
Sobha Ltd.    
13 Nov 2018
485.25
-2.63%
HDFC Securities
Maintain BUY with TP of Rs 630/share. 2QFY19 Revenue came in at Rs 6.6bn (+2% YoY, +10% QoQ, 14% beat). EBITDA margin increased by 198bps YoY to 21.3% (-57bps QoQ). In the absence of IND AS 115, Revenue/ APAT would have been higher by Rs 2.2bn/120mn respectively.
Sobha Ltd. has an average target of 533.00 from 4 brokers.
Sobha Ltd.    
13 Nov 2018
485.25
-2.63%
Nirmal Bang Institutional
Rising Debt And Decline In Operational Cash Flow Raises Concerns Despite the strong growth in earnings of Sobha in 2QFY19, we are concerned on the sharp decline in cash flow after income tax and interest expenses by 70% QoQ and 60% YoY to Rs238mn. Consequently, net debt increased to Rs23.6bn, an increase of 4%QoQ. The weak cash flow is partially because of rising marketing and overhead costs following pricing pressure in a weak market. Given the weak market and the company's deteriorating balance sheet, we are concerned over Sobha's planned foray in the commercial real estate market which is expected to increase the strain on its balance sheet further. We have...
Sobha Ltd. is trading above all available SMAs
Sobha Ltd.    
10 Aug 2018
485.25
-2.63%
buy
Hold: Sobha Ltd.
ICICI Securities Limited
Sobha's topline grew 18.6% YoY to | 800.5 crore (our estimate: | 775.5 crore) led by 37.3% YoY growth in revenues from contractual division to | 238.1 crore (our estimate: | 231.2 crore). Further, its real...
Sobha Ltd. is trading above all available SMAs
Sobha Ltd.    
09 Aug 2018
485.25
-2.63%
HDFC Securities
We maintain BUY with NAV of Rs 644/share. 1QFY19 Revenue (not comparable on account of IND AS 115 transition) came in at Rs 6.0bn (-12.0% YoY, -22.3% QoQ). IND AS-115 adjustments resulted in SDL reversing Rs 32.6bn revenue and Rs 7.6bn of profits and this will be re-recognized over the next 8-10 quarters depending on individual project completion.
Number of FIIs/FPIs holding stock rose by 25 to 167 in Mar 2019 qtr.
Sobha Ltd.    
22 May 2018
485.25
-2.63%
HDFC Securities
Maintain BUY with an increased NAV of Rs 641/share. Sobha Developers (SDL) 4QFY18 net profit came in at Rs 0.7bn vs. our estimate of Rs 0.4bn. SDL recorded a healthy 1.02mn sqft of pre-sales for 4QFY18. Pre-sales value (SDLs share) was Rs 6.6bn, which is 30% higher YoY.
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Number of FIIs/FPIs holding stock rose by 25 to 167 in Mar 2019 qtr.
Sobha Ltd.    
22 May 2018
485.25
-2.63%
Nirmal Bang Institutional
Strong Earnings Growth, But Margin Compression Raises Concerns Sobha reported a net profit of Rs654mn for 4QFY18, up 42.2% YoY and 22.5% QoQ. Sales volume stood at 1.01mn sqft in 4QFY18, an increase of 9% QoQ and 40% YoY. Revenues stood at Rs7,696mn, up 30.7% YoY and 11.2% QoQ. Despite the rise in revenues, we still have concerns such as: 1) Margin compression - Sobha reported EBITDA margins of 17.7% for 4QFY18, down 270bps YoY and 210bps QoQ. 2) Although the sales volume increased, average realisation at Rs 6,457/sqft declined 1% QoQ and 8% YoY. Despite ordinary EBITDA-level performance, the earnings boost came on account of: 1) Higher other income...
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Number of FIIs/FPIs holding stock rose by 25 to 167 in Mar 2019 qtr.