Hold Sobha; target of Rs 450: ICICI Direct

ICICI Direct's research report on Sobha

Sobha's Q4FY17 results were largely above our expectations on both the topline and bottom line fronts. On the operational front, sales volumes grew robustly by 17.9% sequentially to 0.72 million square feet (msf) showing signs of recovery post demonetization.

Outlook

We have rolled over our valuation to FY19E and continue to maintain our HOLD rating with a revised target price of Rs 450 [RE business at 636.2/share (0.97x its FY19E NAV) & construction business at Rs 53.4 /share (5x FY19E EV/EBITDA)].