Taking note of this strong Q4 performance, CLSA has maintained a buy call on Sobha Ltd shares with a target of Rs 760 implying an upside of Rs 210 from the current market price.
Backed by robust sales in March quarter, shares of real estate company Sobha Ltd jumped nearly 11 percent to Rs 564 on the BSE in the early morning trade. Taking note of this strong Q4 performance, CLSA has maintained a buy call on Sobha shares with a target of Rs 760 implying an upside of Rs 210 from current market price. After registering good performance in March quarter, Rs 2600 crore FY 19 pre sales target looks easily achievable for Sobha Ltd, CLSA said.
“The Company has registered new sales volume of 3.63 million square feet, total valued at ~ 28.61 Billion at an average price realisation of~7,892 per square feet at the close of financial year 2017-18 (Sobha Share of sales value at ~ 24.22 Billion, at an average price realization of~ 6,680 per square feet. Annual sales volume and values are up by 21% and 42% respectively,” Sobha said in BSE filings.
Up to Thursday’s close, the stock had declined 17.8 percent this year, compared with 13 percent drop in Nifty realty index. The strong sales numbers were driven by good performance in the core Bengaluru market. “It is important to note that our core market, Bangalore has registered highest ever sales performance both in volume and value terms for the financial year 2017-18,” said company.
The shares of Sobha Ltd were trading at Rs 551.95 up 8.63 percent at the time of reporting.