ICICI Securities Limited recently issued Buy Call on Sobha Ltd, along with a new Target Price for the company. Now, let’s examine the research reports and explore their overviews.
Sobha Ltd is a renowned real estate developer based in India. Founded in 1995 by P.N.C. Menon, Sobha Ltd has emerged as a leading player in the industry. The company’s headquarters are located in Bangalore, Karnataka.
Sobha Ltd primarily operates in the residential and commercial real estate sectors. They are known for their focus on quality construction and attention to detail. The company has successfully completed numerous projects across major cities in India, including Bangalore, Chennai, Pune, and Kochi.
First of all, let’s take a look at the current share price of Sobha Ltd. To visualize these changes, we can refer to the Sobha Ltd Share chart which displays the historical share prices, indicating the ups and downs over time.
Research Report
ICICI Securities Limited’s Report Overview
Sobha Ltd. (SOBHA) has achieved remarkable results in Q4FY23, with gross sales bookings reaching 1.48 million square feet (msf) valued at Rs14.6 billion. This represents a 32% year-on-year increase in value, primarily driven by the company’s highest-ever gross realization of Rs9,898 per square foot (psf). The company’s performance for the entire fiscal year 2023 has been outstanding, with gross sales bookings totaling 5.65 msf worth Rs52.0 billion.
Looking ahead to FY24, Sobha Ltd. plans to launch 7-8 msf of new projects. The majority, 5 msf, will be in Bengaluru, 1 msf in Gurugram, and the rest in other cities. If all the planned launches receive approvals, the company aims to achieve a 15-20% growth in gross sales bookings for FY24. This translates to estimated sales bookings of Rs57.8 billion in FY24E and Rs61.1 billion in FY25E, according to our models.
In FY23, Sobha Ltd. also demonstrated a positive reduction in net debt levels, which decreased by Rs7.0 billion to Rs16.4 billion, resulting in a net debt-to-equity ratio of 0.66x. This reduction, coupled with higher launch volumes and realizations across projects, has prompted us to maintain our BUY rating. Our revised SOTP-based target price for Sobha Ltd. is Rs891 per share (previously Rs808).
ICICI Securities Limited Buy Call: Sobha Ltd
Sobha Ltd’s current market price is Rs 533. Recently, ICICI Securities Limited recently issued Buy Call on Sobha Ltd with a new Target Price of Rs 891.
| Company | Sobha Ltd |
|---|---|
| AUTHOR | Prabhudas Lilladher |
| DATE | 30 May 2023 |
| Current Price | Rs 533 |
| TARGET | Rs 891 |
| Type | Buy |
| Report |
Ownership Structure
Here’s a table summarizing the ownership structure of the company.
| Shareholding | Sep ’22 | Dec ’22 | Mar ’23 |
|---|---|---|---|
| Promoters | 52.0 | 52.0 | 52.3 |
| Institutional investors | 29.3 | 28.9 | 27.4 |
| MFs and others | 12.1 | 12.2 | 11.3 |
| Insurance | 1.6 | 1.6 | 2.4 |
| FPI | 15.6 | 15.1 | 13.7 |
| Others | 18.7 | 19.1 | 20.3 |
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