Sobha - Gurugram Market Drives Sales Bookings: ICICI Securities

The Gurugram market clocked sales volumes of 0.35 msf and accounted for 24% of the quarter’s volumes.
<div class="paragraphs"><p>Residential property at Gurugram developed by Sobha Ltd. (Source: Company website)</p></div>
Residential property at Gurugram developed by Sobha Ltd. (Source: Company website)

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ICICI Securities Report

Sobha Ltd. achieved Q3 FY23 gross sales bookings of 1.47 million square feet worth Rs 14.2 billion versus our estimate of Rs 12.0 billion and is the best ever quarter for the company in value terms for sales bookings.

The Gurugram market which saw release of new inventory of 0.7 msf was the key driver with volumes of 0.35 msf and accounted for 24% of the quarter’s sales volumes.

While the strong start to H1 FY23 had led to the company revising its FY23 guidance to 10-15% YoY volume growth and 15-20% YoY value growth, given the strong nine months-FY23 performance with gross sales bookings worth Rs 37.3 billion (up 35% YoY), we believe that Sobha is well on track to achieve its FY23 guidance and we maintain our FY23E and FY24E gross sales booking value estimates of Rs 51.0 billion and Rs 55.4 billion, respectively.

Key risks are slowdown in residential demand and a rise in the company’s debt levels.

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ICICI Securities Sobha Update.pdf


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