Buy Sobha, target price Rs 580: Yes Securities

Yes Securities has buy call on with a target price of Rs 580. The current market price of Sobha Ltd. is Rs 522.35 Time period given by analyst is Intra Day when Sobha Ltd. price can reach defined target.

Sobha Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 4959.02 Crore) operating in Real Estate sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 696.30 Crore, up 27.55 % from last quarter Total Income of Rs 545.90 Crore and down -22.74 % from last year same quarter Total Income of Rs 901.20 Crore. Company reported net profit after tax of Rs 21.60 Crore in latest quarter.

Investment Rationale
The stock has broken out from a bullish flag pattern resistance on good volumes, triggering resumption of the uptrend. Further, on the weekly chart, it has taken support at the 200-WMA and 20-WMA, confirming bullishness. RSI, too, has turned upwards from the lower end of the bull support area, i.e. 40, confirming bullishness.

Promoter/FII Holdings
Promoters held 52 per cent stake in the company as of Dec 30, 2020, while FIIs held 16 per cent, DIIs 13.4 per cent and public and others 18.7 per cent