HDFC Securities is bullish on Sobha has recommended buy rating on the stock with a target price of Rs 644 in its research report dated 09 Aug 2018.
HDFC Securities' research report on Sobha
1QFY19 Revenue (not comparable on account of IND AS 115 transition) came in at Rs 6.0bn (-12.0% YoY, -22.3% QoQ). IND AS-115 adjustments resulted in SDL reversing Rs 32.6bn revenue and Rs 7.6bn of profits and this will be re-recognized over the next 8-10 quarters depending on individual project completion.
Affordable segment (Rs 50-60L/ unit) will drive the volumes in key markets. Over longer term SDL wants to multiply volumes 2x to ~6mn sqft. We maintain BUY with NAV of Rs 644/share.
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