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  1. Sobha stock gains 8 per cent on record FY18 property sales

Sobha stock gains 8 per cent on record FY18 property sales

The stock of Sobha rose by 7.76% to end the session at Rs 547.55 after the company's total sales volume rose 21% in FY 18.

By: | Mumbai | Published: April 7, 2018 12:24 AM
sobha, sobha stock, markets, property sales, RERA, Bengaluru, Gurgaon, kochi The stock of Sobha rose by 7.76% to end the session at Rs 547.55 after the company’s total sales volume rose 21% in FY 18.

The stock of Sobha rose by 7.76% to end the session at Rs 547.55 after the company’s total sales volume rose 21% in FY 18. In an exchange filing, the company said its operational performance for the fourth quarter and for the financial year 2017-18 has been the best in value terms, with growth across regions and product categories. In a note to investors, SBI-CAP securities said the total residential sales bookings of Rs 2,420 crore in FY18 was the highest in Sobha’s operating history. “While the company did benefit from a low base (due to weak sales momentum of prior years), we were surprised by the sales velocity in FY18 as the overall Bengaluru residential market remained sluggish, and Sobha had a large unsold inventory of primarily premium residential projects,” the note said. “A large proportion of near-complete inventory appears to have helped Sobha’s FY18 sales, as new launches were impacted by RERA implementation. Sobha also appears to have made strong market share gains in Bengaluru, Gurgaon, and Kochi, where the overall market absorption figures declined during 9MFY18. Sustainability of these market share gains is important, as they could come under pressure with the revival in new launches of other developers,” the note added. Of the 20 analysts who track the stock 13 gave a ‘Buy’ rating, five a ‘Hold’ and two a ‘Sell’. A total of 38.42 lakh shares of Sobha were traded on both NSE and BSE on Friday, which is 7.12 times more than its three-month daily average volume.

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