Buy Sobha; target of Rs 600: HDFC Securities
HDFC Securities is bullish on Sobha has recommended buy rating on the stock with a target price of Rs 600 in its research report dated February 16, 2021.
February 17, 2021 / 02:10 PM IST
HDFC Securities' research report on Sobha
Sobha Ltd. (SDL) reported an operationally robust 3QFY21 with pre-sales volume of 1.13msf (+7%/+27% YoY/QoQ). Pre-sales value grew by 22% YoY to Rs 8.9bn. Real estate collections have also improved to Rs 6.6bn (vs Rs 5bn in 2QFY21). With 14.4 msf of new launch pipeline, management expects further momentum in sales as largely the current pre-sales is driven by older projects under execution. We maintain BUY on SDL as we expect the strong momentum in pre-sales to continue.
We leave the TP unchanged at Rs 600/sh and cut FY21 EPS by 49%, owing to lagged completions and slow contract business execution.
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