JM Financial is bullish on Sobha Ltd has recommended buy rating on the stock with a target price of Rs 600 in its research report dated May 21, 2018.
JM Financial's research report on Sobha Ltd
Sobha 4Q profit was +42% YoY, on higher revenue recognition during the quarter. Revenue recognition increased by 35% YoY while contractual revenues improved by 24%. Sobha reported fresh sales at INR6.6bn, +7/30% QoQ/YoY respectively, as sales witnessed improvement across Sobha reported fresh sales at INR6.6bn, +7/30% QoQ/YoY respectively, as sales witnessed improvement across regions.
Outlook
We believe Sobha will be a beneficiary of improvement in end-user demand, as sector transparency improves. However execution of land parcels remains critical for significant upside potential. Maintain BUY with TP at INR 600.
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