Prabhudas Lilladher is bullish on Sobha Developers and has recommended accumulate rating on the stock with a target of Rs 431 in its January 7, 2013 research report.
“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. Sales from Chennai & Coimbatore witnessed a sharp jump of 59% and 84% QoQ, respectively, while Thrissur, Pune and Gurgaon declined 25%, 40% and 25% on a sequential basis. Sales from Bengaluru remained status-quo for the quarter, contributing 65% to the total sales of the company. The company’s Gurgaon project is likely to come up for revenue recognition during the quarter which is likely to increase the company’s quarterly run-rate in terms of revenue recognition.”
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