Citi has maintained a ‘Sell’ rating on Sobha Limited, with a target price of ₹1,450 per share, slightly revised from ₹1,460 earlier. The revised target price indicates a potential downside of 6.2% from the current levels.
Key Highlights:
- Valuation Concerns: Citi notes that current valuations already factor in a significant amount of optimism, leaving little room for execution misses or further upside.
- Operational Trends and Rights Issue: The target price revision incorporates recent operational trends and the impact of the company’s rights issue.
- Execution Risks: The brokerage underscores that the company has limited headroom for operational underperformance given the tight valuation metrics.
Citi remains cautious on Sobha’s near-term prospects, emphasizing potential downside risks in light of constrained valuation upside and operational challenges.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
