Morgan Stanley goes overweight on Sobha, price target Rs 613

Morgan Stanley has an overweight rating on Sobha in the long term with a target price of Rs 613. The stock ended down 5 per cent at Rs 188 on Wednesday while the BSE Sensex closed 1709.58 points down (-5.59%) at 28,869.51.

Investment Rationale

Sobha is down 60 per cent over the last six months versus fall of 15 per cent for the Sensex and now trades at a 65-70 per cent discount to current NAV, making valuations attractive, said Morgan Stanley. Its operational performance is steady in terms of pre-sales velocity and outlook for new launches over the next few quarters, said Morgan Stanley.

Financials


For the quarter ended December 31, 2019, the company has reported consolidated sales of Rs 883.20 crore, up 12.67 per cent from last quarter's sales of Rs 783.90 crore and up 12.10 per cent from last year same quarter sales of Rs 787.90 crore. The company has reported net profit after tax of Rs 73.20 crore in the latest quarter.