Today, we are going to estimate the Sobha Share Price Target 2024 to 2050 Long Term Prediction. Sobha is listed on the NSE under the symbol “SOBHA” and on the BSE with the code “532784”. let’s analyze the future of Sobha shares as well, including whether it’s a good time to buy or sell them today.
Additionally, we will also take into analysis Sobha Share Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation at the end of the article.
Overview of Sobha
| Name | Sobha |
|---|---|
| Industry | Real Estate |
| Founded | 1995 |
| Services | Construction, Development, Property Management |
| Country | India |
| Website | Sobha Limited |
| Profile | Sobha |
Keep an eye on Sobha’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in Sobha’s stock price.
About Sobha Company
Sobha Limited in the Indian real estate sector Company, has been shaping the urban landscape since its establishment in 1995. With a steadfast commitment to quality and innovation, Sobha has earned a stellar reputation for delivering exceptional residential and commercial properties across India.
Sobha’s business encompasses a wide spectrum of services, including construction, development, and property management. The company’s portfolio features a diverse range of residential and commercial properties, each exemplifying the highest standards of design, craftsmanship, and functionality.
Sobha’s product offerings span luxurious residential dwellings and sophisticated commercial spaces. From opulent homes that epitomize elegance and comfort to cutting-edge commercial developments that cater to diverse business needs, Sobha’s properties are a testament to meticulous planning and superior execution.
Financial of Sobha
Conduct a SWOT analysis of Sobha Share based on its financials. We will break down the key elements of strengths, weaknesses, opportunities, and threats using the financial data.
Strengths–
Steady Revenue Growth: Sobha has shown consistent growth in total revenue over the years, moving from 21,067,020 thousand in 2020 to 37,208,150 thousand in the trailing twelve months (TTM).
Robust Gross Profit: The company’s gross profit has been substantial, though with some fluctuations. It peaked at 17,419,640 thousand, indicating a strong margin over costs.
Healthy Operating Cash Flow: The operating cash flow has been positive and growing, reaching 11,502,000 thousand in 2023, demonstrating good operational efficiency.
Weaknesses–
High Cost of Revenue: The cost of revenue is significant, which impacts the net income. In the TTM, it was 25,022,840 thousand.
Fluctuating Net Income: Net income has seen fluctuations, with a notable dip in 2020 (622,760 thousand) before increasing again in TTM (1,073,510 thousand), indicating potential instability in profitability.
Increasing Debt Levels: The total debt has risen, with net debt reaching 17,242,000 thousand, suggesting a reliance on borrowed capital.
Opportunities–
Capitalizing on Market Trends: With increasing assets and a solid base in equity and tangible book value, Sobha can capitalize on real estate market trends.
Expanding Market Presence: The increase in total assets from 110,122,260 thousand in 2020 to 125,757,000 thousand in 2023 indicates room for further expansion and diversification.
Threats–
Interest Expense Burden: High-interest expense (2,384,640 thousand in the TTM) can be a burden, affecting net income.
Market Competition: As the real estate sector is highly competitive, maintaining market share and profitability can be challenging.
Brokerage Firms
An effective method for evaluating the Sobha share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on Sobha.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 3 Jan 2024 | Motilal Oswal | 1400 | Buy |
| 08 NOV 2023 | HDFC Securities | 1024.00 | Buy |
| 08 NOV 2023 | ICICI Securities Limited | 891.00 | Buy |
| 07 NOV 2023 | Motilal Oswal | 960.00 | Buy |
| 05 OCT 2023 | HDFC Securities | 1024.00 | Buy |
| 07 SEP 2023 | HDFC Securities | 1024.00 | Buy |
| 09 AUG 2023 | HDFC Securities | 935.00 | Buy |
| 09 AUG 2023 | ICICI Securities Limited | 891.00 | Buy |
| 06 JUL 2023 | ICICI Securities Limited | 891.00 | Buy |
The financial services firm Motilal Oswal published the latest research report on Sobha Share Price Target, assigning a ‘buy’ rating with a share price target of Rs. 1400 from its current market price of Rs. 1120.
Sobha has outlined an ambitious plan for launching around 15 million square feet (msf) of projects, of which 3-4 msf was already launched in the third quarter of FY24. The remaining projects are scheduled for launch over the next one and a half years. These initiatives are supported by the company’s vast land reserves of approximately 200 msf, with plans to launch 30-40 msf of projects in the next three to four years.
The company’s healthy balance sheet has been a significant enabler in its growth trajectory. In the last three years, Sobha’s management has successfully reduced leverage, with net debt decreasing by INR13 billion to INR14 billion as of September 2023. This financial prudence has positioned the company to scale up its operations effectively.
However, there are key risks associated with this target price, including potential slowdowns in residential absorption, delays in the monetization of large land parcels, and challenges in signing business development (BD) deals.
Additionally, Sobha’s focus on sustainable growth is evident in its operational strategies. The company is expected to recover its EBITDA margin to 25-30% in the residential segment by the fourth quarter of FY24. This recovery is attributed to projects launched post FY23, which have shown healthy realizations and are expected to generate over 30% EBITDA margin.
In the context of valuation, Sobha’s land, approximately 200 msf, is currently valued at INR38 billion, compared to an arrived value of INR60 billion, assuming a monetization period of 25-75 years. The company’s shares are trading at a 25-40% discount compared to its midcap and smallcap peers, making it an attractive proposition for investors.
Sobha’s revised target price (TP) has been set to INR1,400, indicating a promising 25% upside potential. This revision is underpinned by several factors, including the company’s impressive track record of delivering a 30% Compound Annual Growth Rate (CAGR) in pre-sales over FY21-23. During this period, Sobha sustained pre-sales in the range of INR20-30 billion and witnessed a notable increase in sales volumes, driven by robust demand, increased launches, and rising prices, especially in markets like NCR, GIFT City, and Pune.
Long-Term Prediction
We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Sobha Share Price Target 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.
| Year | Minimum Share Price (₹) | Maximum Share Price (₹) |
|---|---|---|
| 2024 | ₹1,350 | ₹1,450 |
| 2025 | ₹1,500 | ₹1,650 |
| 2026 | ₹1,700 | ₹1,850 |
| 2027 | ₹1,900 | ₹2,100 |
| 2028 | ₹2,200 | ₹2,400 |
| 2029 | ₹2,500 | ₹2,700 |
| 2030 | ₹2,800 | ₹3,000 |
| 2035 | ₹4,000 | ₹4,500 |
| 2040 | ₹5,500 | ₹6,000 |
| 2045 | ₹7,500 | ₹8,000 |
| 2050 | ₹10,000 | ₹12,000 |
Analyst Recommendations
Sobha Buy or Sell
Daily Low / High
Peer Comparison of Sobha
| Name | P/E | Mar Cap Rs.Cr. |
|---|---|---|
| DLF | 84.43 | 188742.50 |
| Godrej Propert. | 94.01 | 62072.36 |
| Oberoi Realty | 28.57 | 56031.12 |
| Prestige Estates | 30.38 | 51743.23 |
| Phoenix Mills | 47.30 | 41986.12 |
| Brigade Enterpr. | 90.21 | 21322.04 |
| SignatureGlobal | – | 13772.88 |
| Sobha | 111.31 | 11950.59 |
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– As of 4 January 2024, the current share price of Sobha is ₹1,269.50 Check out today’s current share price of Sobha in the top.
– According to Google historical data, the price of Sobha on 22 DEC 2006 was ₹1008.25.
– The latest research report from Motilal Oswal sets a Sobha Share Price Target of Rs.1400.
– Based on our analysis, the maximum Sobha Share Price Target in 2025 is projected to be ₹1,650.
– Based on our analysis, the maximum Sobha Share Price Target in 2027 is projected to be ₹2,100.
– Based on our analysis, the maximum Sobha Share Price Target in 2030 is projected to be ₹3,000.
– Based on our analysis, the maximum Sobha Share Price Target in 2035 is projected to be ₹4,500.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices.
Disclaimer– These Share Price Targets for “Sobha Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold Sobha stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
