Buy Sobha, target price Rs 935: HDFC Securities

HDFC Securities has buy call on Sobha with a target price of Rs 935. The current market price of Sobha Ltd. is Rs 648.4. Sobha Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 6144.11 Crore) operating in Real Estate sector.

Sobha Ltd. 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 30-09-2022, the company reported a Consolidated Total Income of Rs 690.60 Crore, up 16.03 % from last quarter Total Income of Rs 595.20 Crore and down -17.03 % from last year same quarter Total Income of Rs 832.30 Crore. Company reported net profit after tax of Rs 19.20 Crore in latest quarter.

Investment Rationale
SDL expects to see normalisation in EBITDA margin on account of improving the prospect of contractual business post-COVID. The brokerage maintains BUY with an increased TP of INR 935 (rollover to Sep-24E).

Promoter/FII Holdings
Promoters held 51.99 per cent stake in the company as of 30-Sep-2022, while FIIs owned 15.02 per cent, DIIs 13.71 per cent.