Religare's report on Sobha Developers"Sobha reported flat Q2FY16 sales of 0.85msf (Rs 4.95bn) following a dip in Bengaluru volumes (0.61msf vs. 0.70msf in Q1FY16), partly offset by an uptick in Chennai (0.12msf vs. 0.07msf in Q1). H1FY16 volumes of 1.69msf form 42% of management’s FY16 target – Sobha’s ability to meet the full-year guidance will hinge on the continuing performance of its aspirational Bengaluru project. While we expect slow volume growth, negatives appear largely priced in post the 33% drop in share price over the past 3 months. Though volumes are likely to remain subdued over the next 3-4 quarters, the recent stock correction (33% in last 3 mths) offers close to 40% upside. We upgrade the stock to BUY and retain our Sep’16 TP of Rs 390", says Religare research report.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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