Sobha Ltd.

NSE: SOBHA | BSE: 532784 | ISIN: INE671H01015 |Industry: Realty
|Mid-range Performer
Durability score
55 /100
Valuation score
36.2 /100
Momentum score
45 /100
Market Capitalizati...
4,455.6 Cr.
AVG Broker Target
517.7
PE TTM Price to Ear...
13.3
Sobha Ltd.    
14 Aug 2019
470.00
4.11%
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.
HDFC Securities released a Buy report for Sobha Ltd. with a price target of 652.0 on 14 Aug, 2019.
Sobha Ltd.    
14 Aug 2019
470.00
4.11%

Sobha Limited

buy
Hold: Sobha Ltd.
ICICI Securities Limited
Number of FIIs/FPIs holding stock rose by 24 to 191 in Jun 2019 qtr.
Sobha Ltd.    
14 Aug 2019
470.00
4.11%
Nirmal Bang Institutional
The 1QFY20 result has increased our concerns about the weakening balance sheet amid very weak operating cash flows. 1QFY20 operating cash flow (not including interest and income tax) is only Rs55mn, lowest in the past 16 quarters. Management on the conference call explained that the cash inflow has been weak due to complex agreements in some projects, which has got...
default
Promoters pledge increased to 20.37% of holdings in Jun 2019 qtr.
Sobha Ltd.    
29 May 2019
470.00
4.11%
buy
ICICI Securities Limited
Sobha's topline grew strongly by 81.6% YoY to | 1,397.8 crore led by 102.9% YoY growth in revenues from real estate division to | 1,017.3 crore. EBITDA margins contracted 30 bps YoY to 17.4% and were below our estimate of 20.8%. PAT grew robustly by 73.2% YoY to | 113.3 crore (our...
Sobha Ltd. has an average target of 517.67 from 3 brokers.
Sobha Ltd.    
21 May 2019
470.00
4.11%
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.
default
HDFC Securities released a Buy report for Sobha Ltd. with a price target of 652.0 on 14 Aug, 2019.
Sobha Ltd.    
07 Feb 2019
470.00
4.11%
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.
HDFC Securities released a Buy report for Sobha Ltd. with a price target of 652.0 on 14 Aug, 2019.
Sobha Ltd.    
07 Feb 2019
470.00
4.11%
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 517.67 from 3 brokers.
Sobha Ltd.    
07 Feb 2019
470.00
4.11%
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...
Sobha Ltd. has lost -17.97% in the last 1 Month
Sobha Ltd.    
15 Nov 2018
470.00
4.11%
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...
Sobha Ltd. has lost -17.97% in the last 1 Month
Sobha Ltd.    
13 Nov 2018
470.00
4.11%
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 517.67 from 3 brokers.