Sobha stock sparkles on sales volume

Sobha declared its yearly sales volume on April 6. The company has registered new sales area of 3.38 million square feet, valued at Rs 20.12 billion at an average realisation of Rs 5946 per square feet. It witnessed 3.19 per cent increment in sales volume in FY16 as compared to FY15. Meanwhile, the company’s total sales value declined by 3.59 per cent to Rs 21458 million in FY16 as compared to previous financial year.

On quarterly basis, Sobha sold about 885685 square feet on new area worth Rs 5.35 billion at an average price realisation of Rs 6037 per square feet. The company’s Bangalore region performed strongly in FY16. Its performance in other markets remained lower than expected on account of ongoing sector specific challenges.

Sobha has launched Sobha Dream Acres Project under the Dream Series banner, which has emerged as the fastest selling brand. During the last quarter, the company also launched Sobha Retreat in Mysore, a plotted development project with total saleable area of 0.33 million square feet. It has made a soft launch of first phase of Group Housing Project in NCR-Gurgaon with total saleable area of 3.23 million square feet. Sobha has already acquired requisite approvals for the project and has a launch  scheduled in Q1FY17.

Sobha has launched a mixed used development project, Sobha Hartland in Mohammed Bin Rashid Al Maktoum City, Dubai towards the end of March. Sobha Hartland will comprise of ultra-contemporary L-shaped villas with an option of 12 floor-plans, semi-detached villas, townhouses, plots and modern high rise apartments with a huge emphasis placed on space.

The share price of Sobha has increased by 5.99 per cent on bourses in early trades; and is trading at Rs 281.9 on an intraday basis.

Sobha is a real estate company and is in the business of construction, development, sale, management and operation of all or any part of townships, housing projects, commercial premises and other related activities. The company is also engaged in manufacturing activities related to interiors, glazing and metal works and concrete products. Its residential projects include luxury and super luxury apartments, villas, row houses, plotted development and aspirational homes. Sobha’s contractual division provides end to end solutions starting from the conceptualisation of a project to its final satisfactory completion.