INSUBCONTINENT EXCLUSIVE:
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
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.
