Sobha Ltd.’s share price is currently trading at ₹1,212 as of March 27, 2025, 2:41 PM. The stock opened at ₹1,204, slightly above its previous closing price of ₹1,203. During today’s session, it touched a low of ₹1,199.5 and reached a high of ₹1,216. Despite market fluctuations, the stock remains strong, backed by solid fundamentals and future project plans.
Overview of Contents
Geojit Financial Services’ Buy Rating on Sobha
Leading brokerage Geojit Financial Services has recommended a BUY rating on Sobha Ltd., setting a target price of ₹1,447. The firm believes the stock has strong potential for growth despite recent volatility in pre-sales.
Why Geojit Expects Sobha to Rise?
Proven Track Record: Sobha Ltd. has successfully delivered ~136 million sq. ft. across 546 projects in 14 states.
Strong Pipeline: With a 21 million sq. ft. project pipeline, including 8.91 million sq. ft. in inventory, Sobha is well-positioned for future growth.
Revenue Surge: In Q3FY25, Sobha’s revenue grew by 79% YoY, driven by 1.64 million sq. ft. of project completions (+27% YoY).
Price Appreciation: Though pre-sales fell 29% YoY, the company’s average realization improved by 17% YoY, signaling strong demand.
₹15,000 Crore Unrecognized Revenue: The company has a significant backlog of sold units, with an expected 28% margin at the project level.
Risks and Challenges
Residential Demand Uncertainty: Any slowdown in housing demand could extend the time needed to monetize land and inventories.
Margin Decline: Sobha’s EBITDA margin contracted by 533 basis points due to losses in the contract and manufacturing segment.
Conclusion: Is Sobha a Good Buy?
With its ₹1,447 target price, Sobha offers strong upside potential from its current trading price of ₹1,212. While risks exist, its expanding project pipeline and improved pricing make it an attractive pick for long-term investors.