Sobha Shares Gain On Posting Highest Ever Sales Volume In Q1
Sobha's sales volume stood at 1.36 million square feet in the April-June period, up 51.7% over the year earlier.
Shares of Sobha Ltd. posted their best day in nine months after the real estate developer reported its highest ever sales volume in the first quarter of the ongoing fiscal.
The company’s sales volume stood at 1.36 million square feet in the April-June period, up 51.7% over the year earlier, according to its quarterly business update released on the stock exchanges after market hours on Wednesday. Its total sales value is at Rs 1,145 crore, up 67.7% year-on-year.
Average price realisation at Rs 8,431 per sq ft vs Rs 7,626 per sq ft a year ago, aided by price increases across ongoing projects.
The company launched three new residential projects in Bengaluru with over 2 million sq ft of saleable area in the quarter-ended June.
The company said it continued with its calibrated price increases in all projects and cities to mitigate the adverse impact due to the high inflation and elevated construction costs.
Despite increase in prices and higher home loan rates, demand continues to be strong across segments, particularly in Bengaluru and Gurugram.
Rising visibility of GIFT city, new launches in Bengaluru have led to strong sales.
Cash flows during the quarter also remained strong resulting in further net debt reduction.
The rally in Sobha’s stock price was also aided by a Knight Frank India report that said residential sector in India has recorded a nine-year high sales volume in the first half of 2022.
Shares of the company jumped over 11% in intraday trade before closing 9.83% higher, the best in nine months. The stock gained for the third straight session, up 16% during the period. Trading volume was nearly 12-times the 30-day average, when markets closed.
Of the 17 analysts tracking Sobha, 15 maintain a ‘buy’ and two suggest a ‘hold’, according to Bloomberg data. The average of the 12-month consensus target price implies an upside of 22.5%.
The stock was the top gainer in the Nifty Realty index.