Moneycontrol
Last Updated : Jan 08, 2018 11:46 AM IST | Source: Moneycontrol.com

Sobha surges 14% as sales bookings nearly doubled in Q3

The Bengaluru-based developer had sold properties worth Rs 390.8 crore in the year ago period.

 
 
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Sobha shares hit fresh 52-week high of Rs 687, rising as much as 13.6 percent in early trade Monday following strong sales bookings for quarter ended December 2017.

The realty firm's sales bookings increased 92 percent to Rs 750.9 crore during the third quarter this fiscal on higher volumes and better average realisation.

The Bengaluru-based developer had sold properties worth Rs 390.8 crore in the year ago period.

According to an operational update, Sobha sold 9,33,365 sq ft (square feet) area during the third quarter, up 52 percent from 6,13,652 sq ft in the same period last fiscal.

The average price realisation increased to Rs 8,045 per sq ft from Rs 6,369 per sq ft during the period under review.

Besides Bengaluru, Sobha has real estate projects in Gurgaon, Chennai, Kochi, Thrissur, Calicut, Coimbatore, Mysore and Pune.

Sobha expects that it would be able to sustain this improvement in operational performance in the coming quarters as well.

In the third quarter of 2017-18, the company launched two projects in Bengaluru and Thrissur, with a combined saleable area of 0.98 million sq ft.

During April-December period of this fiscal, Sobha's sales bookings increased by 41 per cent to nearly Rs 2,050 crore compared to Rs 1,455.3 crore in the corresponding period of the previous year.

In the first nine months of this fiscal, the company has crossed the sales bookings figure of entire last fiscal of Rs 2,012 crore.

At 09:34 hours IST, the stock price was quoting at Rs 654.95, up Rs 50.05, or 8.27 percent on the BSE.

Brokerage - CLSA | Rating - Buy | Target - Rs 760

While maintaining Buy rating on Sobha with increased target price at Rs 760 from Rs 606 per share, CLSA said its Q3 pre-sales were at an 11-quarter high.

The Bengaluru-based company has demonstrated improvement in underlying industry trends and ability to tide-over regulatory changes.

Sobha is expected to maintain its pre-sales momentum in quarters ahead. The research house has raised its FY18 pre-sales estimate to near all-time peak levels of FY14 and higher pre-sales increases earnings estimates by 4-5 percent for FY19-20.

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 605

Morgan Stanley has maintained Overweight call on Sobha with a target price of Rs 605 per share following strong sales momentum in Q3 operations.

The research house said double-digit growth should pick up, driven by real estate & contractual business and realty should benefit from forthcoming new launches & pent-up demand.

Brokerage - Axis Capital | Rating - Hold | Target - Rs 574

Axis Capital expects collections are expected to remain steady QoQ on RERA implementation and net debt to remain in line despite Rs 64-crore buyback.

The research house expects further revival in sales going forward, as company plans to launch 3-4 new projects.

It has maintained its hold rating with a target at Rs 574 per share.
First Published on Jan 8, 2018 09:44 am
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