Sobha Developers is trading lower by 3% to Rs 397 on reporting 28% year-on-year (yoy) drop in net profit at Rs 69.50 crore for the quarter ended March 31, 2013 (Q4) due to higher material cost.
Strong operational performance in the March quarter and revision of price target upwards by analysts saw the Sobha Developers stock gain over 8% at the start of the week.
Morgan Stanley said the share price of Sobha Developers is expected to rise in absolute terms over the next 30 days as the stock has traded off recently, making short-term valuation much more compelling.
Shares of real estate companies have rallied up to 14% on back of heavy volumes on hopes that a cooling inflation will force the Reserve Bank of India (RBI) to cut the repo rate at its policy meeting this month.
Shares of rate sensitive sectors such as banks, auto and realty have moved higher after the Reserve Bank of India (RBI) has cut the repo rate and cash reserve ratio (CRR) by 25 basis points (bps) each.
Bangalore-based property developer Sobha Developers sold properties worth Rs 533 crore in December quarter of FY 2013, nearly 19% higher than what it sold in the corresponding quarter in FY2012 but 1.1% higher than what it sold in Q2 of FY2013.The
Sobha Developers' inability to generate "enough cash" from its residential development and contractual business is keeping analysts jittery on the stock.
Sobha Developers, the publicly-held realtor, is expected to post an increase in debt by close to 10 per cent as there has been a sharp spike in construction spends, land acquisitions and a Rs 57 crore dividend payout recently.
Sobha Developers, the publicly held realtor, is expected to post an increase in debt by close to 10% as there has been sharp spike in construction spends, land acquisitions and a Rs 57 crore dividend payout recently.
The average price realisation went up 7.5 per cent in the quarter to Rs 5,575 per square feet from Rs 5,188 a year ago. During the September quarter last year, the company had made a new space sale of around 930,000 square feet.
Bangalore-based developer real estate company, Sobha Developers, said it has achieved a record milestone in the history of the company in terms of new space sale.
Sobha Developers, the Bangalore-based publicly-held realty player, has said its sales realisation has gone up 26 per cent on a year-on-year basis while the sales volumes have gone up 25 per cent.
Bangalore-based realty firm Sobha Developers today said it has sold properties worth Rs 479 crore in the first quarter of this fiscal, up by 58% from the year-ago period.
As part of succession planning, P N C Menon, the founder chairman of Sobha Developers who led the company for 17 years, is stepping down to make way for his son Ravi Menon to be the chairman.
Sobha Developers, the Bangalore-based publicly-held realtor, has posted a good 1.3 times growth in its fourth quarter net profit to Rs 94 crore on a good uptake in sales boosting the turnover to Rs 524 crore, which was up by 64 per cent.
In FY 2011-12, real estate developers in Bangalore saw headwinds (interest rate and liquidity challenges) and did not see expected volumes. But at Sobha, 2009 onwards, reducing debt and launching new projects has been our strategy.
