Fundamental

SOBHA LTD. 

Ticker : 532784 
BUY: Rs530.10 
Target: Rs590

Sobha Developers Ltd is one of the largest and only backward integrated company in the construction arena. The different divisions of the company include Sobha Interiors Division, Sobha Glazing and Metal Works Division, Sobha Concrete Products, to name a few. On the consolidated financial front, the net sales of the company for Q1FY20 were Rs 1176.7 crore, up by 96 per cent. The PBIDT for Q1FY20 was Rs 227.5 crore, up by 74 per cent from Rs 130.6 crore posted in Q1FY19. The PAT in Q1FY20 was Rs 90.6 crore, up by 72 per cent YoY. During the quarter, the company launched a total of 0.6 million square feet of new projects. Recently, Sobha has launched the tallest residential building project in Gujarat and will develop 474 units in the housing project located at GIFT City. We recommend a BUY.