Sobha, incorporated in 1995, is a Mid Cap company with a market cap of Rs 16191.90 crore, operating in the Real Estate sector.
Sobha’s key products/revenue segments include Income from Sale of Commercial Flats, Shops & Plots, Sale of services, Income From Glazing, Income From Interiors, Concrete Blocks, Rental Income, Other Operating Revenue, Scrap for the year ending 31-Mar-2024.
Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1270.73 crore, up 1.10% from last quarter Total Income of Rs 1256.88 crore and up 60.60 % from last year same quarter Total Income of Rs 791.25 crore. The company has reported net profit after tax of Rs 40.86 crore in the latest quarter.
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The company?s top management includes Mr.Ravi PNC Menon, Mr.Jagadish Nangineni, Mr.Anup S Shah, Ms.Srivathsala K N, Mr.Raman Mangalorkar, Mr.R V S Rao. Company has BSR & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 11 crore shares outstanding.
Investment Rationale
Sobha clocked FY25 sales bookings of 4.7msf worth INR 62.8bn (decline of 23% YoY in volume terms and 6% in value terms), in spite of the company launching over 8msf of new projects in FY25. Heading into FY26, management is confident of achieving ~INR100bn of gross sales bookings driven by ~5msf of unreleased inventory having GVD of Rs 74 billion in ongoing projects and forthcoming launches of ~19msf with GDV of Rs 265 billion, of which management expects to launch ~8?9msf in FY26. Hence, ICICI Securities revised its FY26?27 sales bookings estimate upwards by ~10% and model for sales bookings of Rs 96 billion in FY26E and Rs 109 billion in FY27E. The brokerage retains its ADD rating with a revised Mar?25 SoTP-based target price of Rs 1,519 (earlier Rs 1,366) at a 20% premium to NAV, factoring in balance rights issue proceeds. Key risks: Lower price growth and residential demand slowdown. Promoter/FII Holdings
Promoters held 52.88 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.91 per cent, DIIs 23.97 per cent.
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