Sobha share price up 2% as Jefferies maintains buy

Sobha share price was up 2 percent intraday on November 10 after brokerage house Jefferies maintained buy rating on the stock.

The global research firm has retained a buy call on the stock with a target of Rs 352 per share. It is of the view that collections show good progress as business returned to normalcy, adding that a surge in non-Bengaluru sales is interesting from cycle perspective, according to a CNBC-TV18 report.

Recovery in H2 could drive upside surprise to the upgraded sales numbers with balance sheet discipline remaining important variable to watch, the brokerage firm added.

Domestic research firm Kotak Institutional Equities has also maintained buy with a target of Rs 400 per share. The company management pointed to the strong recovery in sales and enquiries in Q3. New project launches will likely help maintain sales momentum, the research firm added.

Sobha's improved pace of project execution will aid cash flows, Kotak said.

The realty firm reported a 76 percent decline in its consolidated net profit at Rs 16.2 crore for the quarter ended September on lower income amid COVID-19 pandemic. Its net profit stood at Rs 67 crore in the year-ago period.

Total income declined to Rs 545.9 crore in the second quarter of this fiscal from Rs 803.8 crore in the corresponding period of the previous year, according to a regulatory filing.