ICICI Securities has given Buy recommendation for Sobha recommended buy rating on the stock with a target price of Rs 808 in its research with a target price of Rs. 808 in its research report issued on Oct 11, 2022
ICICI Securities research report on Sobha
Sobha Ltd. (SOBHA) achieved Q2FY23 gross sales bookings of 1.34msf worth Rs11.6bn vs. Isec estimate of Rs11.0bn and is the best ever quarter for the company in value terms for sales bookings. While the company had earlier guided for flattish gross sales volume of ~5.0msf in FY23E (4.9msf in FY22) citing cost input pressures and rising mortgage rates, the strong start to FY23 had led to the company revising its FY23 guidance to 10-15% YoY volume growth and 15-20% YoY value growth. Given the strong H1FY23 performance in spite of rising mortgage rates and strong launch pipeline, we believe that the company is well on track to achieve its FY23 guidance and we maintain our FY23E and FY24E gross sales booking value estimates of Rs45.5bn and Rs49.0bn, respectively.
We maintain our BUY rating with an unchanged SOTP based TP of Rs808/share. Key risks to our call are a slowdown in residential demand and a rise in the company’s debt levels.
At 16:01 hrs Sobha was quoting at Rs 635.00, up Rs 6.65, or 1.06 percent.
It has touched an intraday high of Rs 635.00 and an intraday low of Rs 622.05.
It was trading with volumes of 12,182 shares, compared to its thirty day average of 20,384 shares, a decrease of -40.24 percent.
In the previous trading session, the share closed down 3.19 percent or Rs 20.70 at Rs 628.35.
The share touched its 52-week high Rs 1,045.00 and 52-week low Rs 480.35 on 19 January, 2022 and 20 June, 2022, respectively.
Currently, it is trading 39.23 percent below its 52-week high and 32.2 percent above its 52-week low.
Market capitalisation stands at Rs 6,022.71 crore.