CLSA has maintained buy rating on Sobha with a target price of Rs 438.

The stock ended up 9.9 per cent at Rs 176.10 on Tuesday while the BSE sensex closed 2476.26 points up (+8.97 per cent) at 30,067.21. Sobha Ltd., incorporated in 1995, has a market cap of Rs 1670.24 crore. Investment RationaleDue to the lockdown, sales and construction at all real estate projects in India are halted, said CLSA.

While medium-term residential demand is likely to slow sharply, a strong brand and execution record can benefit Sobha, said CLSA.

Following a sharp decline, Sobha’s stock trades at favourable risk-reward, the brokerage said.

FinancialsSobha's key products/revenue segments include Property Development which contributed Rs 2138.29 crore to sales value (62.90 per cent of total sales); Sale of services which contributed Rs 862.11 crore to sales value (25.36 per cent of total sales); Income From Glazing which contributed Rs 157.46 crore to sales value (4.63 per cent of total sales); Income From Interiors which contributed Rs 142.85 crore to sales value (4.20 per cent of total sales); Concrete Blocks which contributed Rs 43.37 crore to sales value (1.27 per cent of total sales); Income From Financial Services which contributed Rs 41.48 crore to sales value (1.22 per cent of total sales); Land Development Rights which contributed Rs 9.86 crore to sales value (0.29 per cent of total sales); Scrap which contributed Rs 4.82 crore to sales value (0.14 per cent of total sales)for the year ending March 31, 2019.

For the quarter ended 31-12-2019, the company reported consolidated sales of Rs 883.20 crore, up 12.67 per cent from last quarter sales of Rs 783.90 crore and up 12.10 per cent from last year same quarter sales of Rs 787.90 crore.

The company reported net profit after tax of Rs 73.20 crore in the latest quarter.