NSE: SOBHA | BSE: 532784 | ISIN: INE671H01015

INDUSTRY : Realty

Sobha Ltd.

Mid-range Performer

222.55 -0.20 (-0.09%)

62.15% Fall from 52W High

Volume: 104.3K

NSEJul 03, 2020 15:31

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Durability score
60/100
High Financial Strength
Valuation score
45.3/100
Mid Valuation
Momentum score
35.4/100
Technically Neutral
5S
14W
8O
2T


Sobha Ltd.    
30 Jun 2020
222.55
-0.09%
buy
by HDFC Securities
Target: 348 | Upside : 56.4%
HDFC Securities
We maintain BUY with reduced TP to Rs 348/sh (vs Rs 377/sh earlier) to account for higher debt. SDL reported operationally weak 4QFY20 with pre-sales of 0.9mn sqft (-20% YoY) as sales in Bengaluru (73% of sales in 4QFY20) fell by 22/20% YoY/QoQ. Pre-sales for FY20 remained flattish at 4.1mn sqft. To add to weak operational performance, SDL evaluated overall portfolio and has recognized 1.93mn sqft of bookings (Rs 12.4bn value and Rs 2bn in collections, ~10% of area under construction) with low/delayed collection as probable cancellation and made it available for sales. Whilst sector as a whole is facing cancellation headwinds, SDL has disclosed same in the results. Silver lining lies in sharp recovery of presales in June near pre-Covid level. We estimate SDL to report industry leading 1QFY21 presales at 60-65% of pre covid levels and collections at ~70%+. SDL with its strong brand positioning, robust unused bank limits (Rs 15bn) and premium positioning in residential segment is well placed to ride COVID headwinds.
Promoters pledge reduced to 20.36% of holdings in Mar 2020 qtr.
Sobha Ltd.    
30 Jun 2020
222.55
-0.09%
buy
Accumulate: Sobha Ltd.
by Nirmal Bang Institutional
Target: 208 | Target met
Nirmal Bang Institutional
We were pleasantly surprised by the relatively strong operating cash flow despite a 7% YoY decline in collections. Cash flow from operations (CFO) and CFO post interest and tax increased by 82% YoY and 368% YoY, respectively. But, the net profit declined by 55% YoY due to combination of 1. Lower revenue 2. Lower margins 3. Higher interest cost. We remain concerned about the high net debt (Rs30.23bn) as of 4QFY20. The net debt to equity ratio stood at 1.24x in 4QFY20. With ongoing lockdown due to COVID 19 we remain concerned about the impact on the...
HDFC Securities decreased Buy price target of Sobha Ltd. to 348.0 on 30 Jun, 2020.
Sobha Ltd.    
06 Feb 2020
222.55
-0.09%
buy
by Karvy
Target: 560 | Upside : 151.6%
Karvy
Stable Pre-sales, Rising Debt: During the quarter, the pre-sale volume remained steady at 1.07 Mnsft
HDFC Securities decreased Buy price target of Sobha Ltd. to 348.0 on 30 Jun, 2020.
Sobha Ltd.    
04 Feb 2020, 06:19AM
222.55
-0.09%
buy
by HDFC Securities
Target: 590 | Upside : 165.1%
HDFC Securities
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
Sobha Ltd. is trading above it's 50 day SMA of 209.7
Sobha Ltd.    
04 Feb 2020, 12:00AM
222.55
-0.09%
buy
by Edelweiss
Target: 682 | Upside : 206.4%
Edelweiss
Inspite of strong pre sales volume growth, realizations were muted leading to only a 1% increase in Sobha's pre sales numbers to INR 608 Cr.
default
HDFC Securities decreased Buy price target of Sobha Ltd. to 348.0 on 30 Jun, 2020.
Sobha Ltd.    
04 Feb 2020, 12:00AM
222.55
-0.09%
buy
Sell: Sobha Ltd.
by Nirmal Bang Institutional
Target: 360 | Target met
Nirmal Bang Institutional
The 3QFY20 result of Sobha Ltd has increased our concerns about the weakening balance sheet amid negative operating cash flows. In 3QFY20, operating cash flow (not including interest and income tax) declined 45% YoY to Rs594mn. Management on the conference call explained that the operating cash flow has been weak due to: (1) cash inflow and outflow mis-match in certain projects like: (a) Higher spends in some of the projects at the time of hand over to the land owner. (b) In certain projects which are from the pre RERA regime, majority of the cash flows have been received earlier while expenses related to those projects have occurred during the quarter. (2) Also, on a YoY basis the real estate...
Sobha Ltd. is trading below it's 100 day SMA of 233.6
Sobha Ltd.    
14 Nov 2019
222.55
-0.09%
buy
by Karvy
Target: 610 | Upside : 174.1%
Karvy
Stable Pre-sales, Weak Earnings: During the quarter, the pre-sales volume remained steady at 1.04 Mnsft
Sobha Ltd. has lost -59.76% in the last 1 Year
Sobha Ltd.    
13 Nov 2019
222.55
-0.09%
buy
Sell: Sobha Ltd.
by Nirmal Bang Institutional
Target: 360 | Target met
Nirmal Bang Institutional
The 2QFY20 result has increased our concerns about the weakening balance sheet amidst negative operating cash flows. In 2QFY20 operating cash flow (not including interest and income tax) turned negative at Rs(96)mn, lowest in the past 16 quarters. Management on the conference call explained that the cash inflow has been weak due to higher construction spends since some of the projects were near completion. We await the improvement in cash flows. The net debt has been on a constant rising streak and has reached a peak of Rs29,803mn. The net debt to equity ratio keeps on depreciating and stands at 1.29x in 2QFY20....
Sobha Ltd. has an average target of 447.17 from 6 brokers.
Sobha Ltd.    
13 Nov 2019
222.55
-0.09%
buy
by Edelweiss
Target: 682 | Upside : 206.4%
Edelweiss
Sobha Ltd. reported its Q1FY20 results. The company recorded muted pre-sales volume of 1.0msf, flat on a YoY (down 3% QoQ).
Sobha Ltd. has an average target of 447.17 from 6 brokers.
Sobha Ltd.    
13 Nov 2019
222.55
-0.09%
buy
Sell: Sobha Ltd.
by Nirmal Bang
Target: 360 | Target met
Nirmal Bang
The 2QFY20 result has increased our concerns about the weakening balance sheet amidst negative operating cash flows. In 2QFY20 operating cash flow (not including interest and income tax) turned negative at Rs(96)mn, lowest in the past 16 quarters. Management on the conference call explained that the cash inflow has been weak due to higher construction spends since some of the projects were near completion. We await the improvement in cash flows. The net debt has been on a constant rising streak and has reached a peak of Rs29,803mn. The net debt to equity ratio keeps on depreciating and stands at 1.29x in 2QFY20....
Sobha Ltd. has lost -44.96% in the last 6 Months