Sobha Ltd will be in focus today after three brokerages — Antique, Motilal Oswal (MOSL), and Nuvama — issued positive but selective views on the stock post its recent business update and earnings review.
Antique maintained a Buy rating and raised its target to ₹2,049 from ₹1,599, citing a strong pan-India launch pipeline and improving margin visibility. While Antique flagged that the company missed FY25 guidance, it remains positive on upcoming launches across Bengaluru, Gurugram, Greater Noida, MMR, Pune, and South Indian cities.
It raised sales booking estimates by 2% for FY26-27E and increased embedded margin assumptions by 300 bps to 25%. The brokerage expects healthy operating cash flow driven by margin improvements and strong execution focus, with near-term launches a key monitorable.
Motilal Oswal (MOSL) also maintained a Buy but cut its target to ₹1,778 from ₹1,803, citing a miss on financials. However, it noted that Sobha’s updated launch pipeline provides visibility, with new projects expected to generate ~₹124 billion in gross cash flows (valued at ~₹74 billion).
MOSL highlighted that despite near-term earnings miss, the medium-term growth story remains intact, underpinned by robust project pipeline and cash flow generation potential.
Nuvama maintained a Buy and raised its target to ₹1,708 from ₹1,601, turning positive on the revival of sales and launches in Q4FY25. The brokerage noted that pre-sales rose YoY, with sequential growth in launches.
It also highlighted that land capex is inching up while leverage has improved due to the recent rights issue. Despite the FY25 miss, Nuvama expects sales momentum to improve, aided by geographical diversification in the launch pipeline.
All three brokerages see positive medium-term visibility for Sobha, driven by launch momentum, margin improvement, and healthy cash flows. Execution of the upcoming launches remains a key monitorable for potential stock re-rating.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
