Buy Sobha; target of Rs 891: ICICI Securities

ICICI Securities is bullish on Sobha recommended buy rating on the stock with a target price of Rs 891 in its research report dated November 08, 2023.

Broker Research

November 11, 2023 / 13:12 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities research report on Sobha

Sobha Ltd. (SOBHA) achieved record Q2FY24 gross sales bookings of 1.7msf worth INR17.2bn (up 48% YoY in value terms), aided by the company achieving over 1msf of sales bookings in Bengaluru. The strong performance in H1FY24 with INR31.9bn of gross sales bookings comes on the back of a strong performance in FY23 when the company had clocked its best-ever annual sales with gross sales bookings of 5.65msf worth INR52.0bn. As per management, demand continues to be resilient and the company plans to launch at least 6-7msf of new projects in H2FY24 having GDV of over INR60bn, of which the Neopolis, Bengaluru project has been launched in Oct’23 which has total area of 3.5msf. The company’s guidance of 15-20% growth in FY24 sales bookings is achievable and we model sales bookings of INR57.8bn in FY24E and INR61.1bn in FY25E.

Outlook

We maintain our BUY rating with an unchanged SOTP-based TP of INR891/share. Key risks are demand slowdown and rise in debt levels.

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