Buy Sobha, target price Rs 970: HDFC Securities

HDFC Securities has buy call on Sobha with a target price of Rs 970. The current market price of Sobha Ltd. is Rs 863.95. Time period given by analyst is 3 months when Sobha Ltd. price can reach defined target.

Sobha Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 8185.67 Crore) operating in Real Estate sector.

Sobha Ltd. key Products/Revenue Segments include Property Development, Income From Construction Work, Income From Glazing, Income From Interiors, Income From Financial Services, Concrete Blocks, Land Development Rights, Rental Income, Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 832.30 Crore, up 58.53 % from last quarter Total Income of Rs 525.00 Crore and up 52.46 % from last year same quarter Total Income of Rs 545.90 Crore. Company reported net profit after tax of Rs 48.30 Crore in latest quarter.

Investment Rationale
Weekly 14 period RSI is placed at 60 and its turn up from here could mean further strengthening of upside momentum for the stock price ahead.

Promoter/FII Holdings
Promoters held 51.99 per cent stake in the company as of 30-Sep-2021, while FIIs owned 17.05 per cent, DIIs 13.72 per cent.