Accumulate Sobha Developers; target of Rs 436: PLilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Prabhudas Lilladher is bullish on Sobha Developers and has recommended accumulate rating on the stock with a target of Rs 436 in its January 31, 2013 research report.
 
“Sobha Developers, although results were broadly in-line with expectations, the pick-up in revenue recognition has been slightly slower than expected. Revenues for the quarter stood at Rs4.3bn, 37% YoY & 4% QoQ growth. Margins stood at 32% as against 31% in Q2FY13 & 36.3% in the corresponding quarter last year. PAT stood at Rs526m for the quarter, growth of 6% YoY & 5% QoQ. Although some additional projects came in for revenue recognition this quarter, the big jump in revenues is expected in Q4 where three of the company’s large projects are likely to cross the recognition threshold.”
 
“Sobha sold 0.9m sq.ft of projects in Q3FY13, the highest ever in terms of value at Rs5.3bn at an average realization of Rs5,909/sq.ft. Against a full year target of Rs3.75m sq.ft in terms of volumes and Rs20bn in value terms, the company has completed 2.68m sq.ft and Rs15.4bn, respectively and seems well on track to achieve its guidance. The quarter did not see any new launches by Sobha. However, additional area of ~1m sq.ft was released at its existing projects i.e. Sobha City and Forest View which was the main reason for sales momentum to be maintained during the quarter. In Q4FY13, the company is targeting the launch of its large project at Minerva Mills, Bengaluru, which is currently awaiting approvals as well as another plotted launch in Bengaluru.”
 
“Sobha’s NAV stands at Rs43.8bn, translating to Rs446/share. We attribute a 10% discount to this to arrive at the value of the real estate business. To this, we are adding the value of the contract business which is calculated at Rs35/share which translates to a target price of Rs436. We maintain ‘Accumulate’ on the stock,” says Prabhudas Lilladher research report.

Read More