Sobha slips 2% after Q4 business update, focus stays on sales momentum

Shares of Sobha fell over 2 percent on April 5 even after the real estate developer reported its best-ever annual sales value of Rs 6,644 crore inthe fourth quarter of FY24.

The company launched six residential projects during the financial year, and completed sales for some of the marquee projects, including Sobha Dream Acres (Bangalore) and Sobha City Gurgaon (NCR), GIFT City projects.

In a regulatory filing, Sobha informed that Q4FY24 has been a steady sales quarter clocking a value of Rs 1,504 crore at an average price realisation of Rs 11,230 per square foot (sq ft).

Analysts at ICICI Securities highlighted that Sobha‘s sales momentum in Q4 moderated as a couple of launches were in the last two weeks of March. Going forward, it will be key to monitor how the momentum of sales continues in FY25 on this healthy base along with the realty company’s debt status.

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Sobha achieved a milestone by surpassing 6 million square feet of new sale area in Q4, and reaching an annual sale value of Rs 6,500 crore.

Bangalore contributed 77.5 percent to the overall sales value for the quarter, supported by the performance of Sobha Neopolis, which was launched in Q3FY24.

The Kerala region registered a growth of 24.4 percent over the previous quarter and 75.3 percent on-year, backed by steady demand in the region and new inventory releases in Marina One (Kochi) and Sobha Metropolis (Thrissur).

“Continued momentum at GIFT City led to sale of complete inventory across both our projects this quarter,” the company said. During the quarter, Sobha also launched four new projects with a total saleable area of 3.18 mn sft, of which, two were launched in the last week of March.

At 9:35am, Sobha Ltd shares were trading 1.5 percent lower at Rs 1,539.00 on the National Stock Exchange (NSE). In FY24, Sobha experienced an impressive surge of 235 percent, emerging as the leading gainer in the Nifty Realty index, which itself rallied by 132 percent.

Also Read | Sobha Ltd gets Rs 46 crore income tax demand notices; company to file appeal

So far this year, the Sobha stock has zoomed nearly 50 percent, outperforming the benchmark Nifty 50 which has risen 3 percent during this period.

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