8 SOBHA share price target reports by brokerages below. See what is analyst's view on SOBHA share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Sobha battled slowing sales, strained cash flows and rising leverage in FY20 (refer to Sobha - Concerns overdone; valuations attractive). The ongoing pandemic is likely to jolt the realty industry by impacting demand and project completions. How Sobha manages its cash flows and balance sheet ahead in the face of cooling consumer sentiment would determine its stock’s trajectory in our view. Maintain ‘BUY/SP’ with a TP of INR212/share. We derive the TP by applying a 40% discount to its SoTP-based NAV of INR283/share for the residential business plus value of the contractual business, i.e. INR42/share.
We expect players like Sobha to be major beneficiary of Post RERA scenario which has resulted in consolidation in real estate industry wherein reputed players backed by execution track record stands to gain market share from unorganised players. The current liquidity crisis has expedited the consolidation and it will strengthen the position of large players. Although we remain cautious of rising debt in Sobha Ltd. We retain “BUY” rating on the stock with reduced target price of Rs. 560.
We expect players like Sobha to a be major beneficiary of post RERA scenariowhich has resulted in consolidation in real estate industry wherein reputed players backed by execution track record stand to gain market share from unorganized players. The current liquidity crisis has expedited the consolidation and it will strengthen the position of large players. However, we remain cautious of rising debt in Sobha Ltd. We value Sobha at 20% discount to its NAV and retain “BUY” rating on the stock with an NAV based target price of Rs. 610.
We have retained our Sell rating on Sobha and valued it at a 15% (earlier 5%) discount to NAV arriving at a revised target price (TP) of Rs360 (earlier Rs405). The reason for downgrading includes rising concerns on: (1) Continuing downtrend in realizations. (2) Poor cash flows (3) Rising debt and weaking Balance sheet.
The combined impact of weak cash flows and land purchases of Rs1.5bn has led to increase in net debt from Rs22,625mn in 1QFY19 to Rs27,518mn in 1QFY20. Net profit grew by 72% YoY to Rs906mn, primarily driven by the 97% YoY rise in revenue to Rs11.7bn. However, rising cost pressures (increase of 119% YoY) together with increase in interest cost (55% YoY) have led to relatively lower growth in net profit. We have retained Sell rating on Sobha with a target price (TP) of Rs376.
We expect players like Sobha to be a major beneficiary of post RERA scenariowhich has resulted in consolidation in real estate industry wherein reputed players backed by execution track record stand to gain market share from unorganized players. The current liquidity crisis has expedited the consolidation and it will strengthen the position of large players, although we remain cautious of rising debt in Sobha Ltd. We have valued Sobha at 0.8x NAV and we retain “BUY” rating with a target price of Rs. 632.
We expect Sobha to be a major beneficiary of post RERA scenario which has resulted in consolidation in real estate industry wherein reputed players backed by execution track record stand to gain market share from unorganized players. The current liquidity crisis will strengthen the position of large developers having minimal dependency on external funding for project completion. Our NAV model yields a per-share value of Rs. 790 and we have valued Sobha at 20% discount to NAV, resulting in a target price of Rs. 632/share.
Sobha reported highest ever sales volume of 1.1 msf in Q4FY19. Bengaluru,Sobha’s key market continues to witness strong traction with one of lowestinventory overhang of 15 months. Coupled with its healthy launch pipelineand more focus on affordable housing, we expect Sobha’s sales momentumto sustain. Hence, we maintain BUY recommendation on Sobha with a revised target price of Rs 620/share. Sobha’s net D/E at 1.0x is relatively higher than its peers and remains the key monitorable for re-rating of the stock.
We maintain BUY post a robust quarter. Our SOTP-based TP has increased to Rs 652 (vs Rs 646 earlier). We have increased our EPS estimate by 3/3.3% for FY20/21E. SDL has ~17.5mn sqft of unsold area in ongoing projects and expects to add 4.2mn sqft from new projects in the pipeline. A well diversified product mix across different regions augurs well for pre-sales recovery. Brand pull will certainly aid pre-sales efforts. Despite capex commitment of Rs 10bn we expect consolidated net D/E to reduce to 0.9x by FY21E (vs. 1.09x now). The contracting business is seeing good growth with an order book of Rs 26bn. We maintain BUY. Key risks: (1) Further deterioration in NBFC liquidity, (2) Higher interest rate, (3) Weak order inflow in the contracting business; and (4) Delay in regulatory approvals.
Retain Sell rating with a target price of Rs376: Rich valuation amid lack of pricing power and rising costs will exert pressure on the stock price. We have retained Sell rating on Sobha with a target price of Rs376. We will be revising our estimates shortly.
While tight liquidity remains key concern for the sector at large, the recent cut in interest rates, RERA-driven consolidation and improving affordability offer growth opportunities. We expect the robust launch pipeline to boost Sobha’s new sales in ensuing quarters. Moreover, steady sales momentum in the Dream Acres project, improvement in the Bengaluru market and strengthening of balance sheet are key stock catalysts. We continue to maintain ‘BUY/SO’ with target price of INR619/share.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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