stock widget
stock widget
Shares of real estate developer Sobha opened over 4 percent higher on April 10 after the company said that it has achieved its highest-ever quarterly sales value at Rs 1,463 crore, up 3 percent from the last quarter and 32 percent over the last year.
This comes just weeks after Income Tax department sleuths raided the company’s offices in Bengaluru and Chennai.
At 9:30 am, the stock was quoting at Rs 465 on the NSE, higher by over 3 percent. It is currently trading 13 percent higher than its 52-week low level hit on March 29.
Follow our live blog for all the market action
The company also said that it has clocked highest ever annual sales of Rs 5,198 crore, with an average price realisation of Rs 9,200 per square feet. It launched nine residential projects with total saleable area of 3.96 million sq ft and started operations in two new cities – Trivandrum and Hyderabad during FY23.
While the Q4 update has propelled the stock higher, Sobha's offices as well as its factories making wood, aluminium, and concrete products were searched by tax sleuths last month.
In January, the Bruhat Bengaluru Mahanagara Palike had cancelled the Occupancy Certificate of a 2,000-unit Sobha City apartment alleging that the builder had submitted a fake no objection Certificate of the Fire Department.
Prior to that in December, the Enforcement Directorate (ED) had attached Sobha's land assets in Kerala worth 201 crore rupees under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
Also Read: RBI Policy meet: These sectors and stocks will be in focus as RBI brings smiles all around
Nuvama Institutional Equities has a 'buy' rating on the stock with a target price of Rs 646. "We await clarity on the ongoing regulatory/legal issues, and believe their resolution will be a key variable," the firm said.
"Revival in housing demand coupled with Sobha’s focus on cash flows and geographical expansion should hold it in good stead," it added. The company's net debt to equity ratio reduced to 0.72 in Q3 FY23 from 0.77 in Q2 FY23.
The stock got a boost on April 6 after the RBI announced a pause on rate hike. This means a pause in rising home loan rates and that’s a big positive for the real estate sector. As per Trendlyne data, Sobha has an average target of Rs 788, which represents an upside of 70 percent.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​