Buy Sobha, target price Rs 750: ICICI Direct

ICICI Direct has buy call on Sobha with a target price of Rs 750. The current market price of Sobha is Rs 580.3 Time period given by analyst is 12-18 Months when Sobha price can reach defined target.


Sobha, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 5505.80 Crore) operating in Real Estate sector.


Sobha key Products/Revenue Segments include Income From Construction Work, Income From Financial Services, Land Development Rights, Income From Glazing, Income From Interiors, Concrete Blocks, Rental Income, Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 898.00 Crore, up 30.03 % from last quarter Total Income of Rs 690.60 Crore and up 28.75 % from last year same quarter Total Income of Rs 697.50 Crore. Company has reported net profit after tax of Rs 31.80 Crore in latest quarter.

The company’s top management includes Mr.Ravi PNC Menon, Mr.J C Sharma, Mr.T P Seetharam, Mr.R V S Rao, Mr.Anup Shah, Ms.K N Srivathsala, Mr.Sumeet Jagdish Puri. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 9 Crore shares outstanding.

Investment Rationale
The consistency in sales volumes, collections and debt reduction is likely tobe a key trigger for a rerating.

Promoter/FII Holdings
Promoters held 51.99 per cent stake in the company as of 31-Dec-2022, while FIIs owned 15.06 per cent, DIIs 13.75 per cent.