Positive on Sobha Developers: Pram Desai, Angel Broking

Param Desai, Research Analyst, Angel Broking, in a chat with ET Now talks about Sobha Developers.

What about Sobha Developers, a big slump in the stock? What’s the rating out there?

We remain positive on Sobha Developers. Sobha Developers is centric towards the Bangalore city where the IT/ITES sector growth has been pretty good, your salary levels have been pretty good over the last one year. So I do expect the volumes for Sobha Developers to remain steady.

Further, they have a contractual business to go with. It has been quite steady over the last 2-3 quarters, that is pretty much dependent on IT/ITES sector growth and that is doing pretty good and they are able to meet their volume guidance. The third quarter results were pretty much in line. With respect to valuation, the stock is currently trading at 50-55% discount to our one-year forward NAV. So the stock looks good at this level right now.