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.
Outlook
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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