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Sobha Shares Plunges 4% on Strong Q1 Business Data

At 9:24 am, Sobha was trading at Rs 571.65, up Rs 16.25, or 2.9% on the BSE.

On July 4, 2023, Sobha’s share price rose 4% in the early trade after the real estate developer accomplished its highest-ever quarterly sale in the April-June quarter of the current financial year.

Sobha has stated a sale value of Rs 14.65 billion, up 27.9% over Q1FY23 and a marginal upsurge over Q4FY23. This was accomplished with the highest-ever price realisation of Rs 10,506 per sq. ft on an aggregate saleable area of 1,394,117 sq. ft.

Bengaluru paid 54% of the total sale value, with enhanced price realisation and product mix moving more towards the luxury section.

Kerala section sales observed an important improvement of 55% growth over the earlier quarter, releasing new inventory in Marina One in Kochi and SOBHA Metropolis in Thrissur.

The National Capital Region (NCR) has succeeded well with a prominent market presence. Demand for GIFT City schemes is rising with enhanced development and visibility.

The company accomplished the building of 0.97 mn sq. ft of saleable area (624 homes) in Q1FY24.
Renewal in housing demand, joined with Sobha’s focus on cash flows and geographical growth, should hold it in good stead. Cash flow development is a key stock catalyst, Nuvama Equities said.

It maintains a “buy” rating on the stock with an unchanged SoTP-based target price of Rs 679.
At 9:24 am, Sobha was trading at Rs 571.65, up Rs 16.25, or 2.9% on the BSE.

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