Reviews

SOBHA LTD.

Ticker : 532784
FV: Rs.10
52-Week H/L: Rs.587.95/380.50
Rec. Price Rs.530.10
CMP: Rs.429.75 

We had previously recommended to buy Sobha Ltd. in volume no. 35, issue no. 47 (dated September 16, 2019), when the scrip was trading at Rs. 530.10. We had recommended the stock based on growing product portfolio of the company. On the consolidated financial front, the company’s revenue from operations for Q1FY20 came in at Rs. 1176.7 crore, up by 96.87 per cent from revenue of Rs. 597.7 crore posted in Q1FY19. The PBT in Q1FY20 stood at Rs. 142.4 crore, registering an increase of 92.43 per cent from Rs. 74.00 crore posted in the same quarter of the previous fiscal. The PAT also rose by 72.24 per cent to Rs. 90.6 crore in Q1FY20 from Rs. 52.6 crore posted in Q1FY19. In a muted environment, the company continues to have healthy cash flows and better sales velocity with upcoming projects in Chennai, Thrissur, GIFT City and Coimbatore. Based on our analysis, we recommend a HOLD.