Share price of Sobha Ltd gained over 14% today amid the real estate firm's continued sales recovery in the September quarter. Sobha Ltd share price opened 3.97% higher at Rs 248 against previous close of Rs 239.15 on BSE. It touched an intraday high of Rs 272.90, a gain of 14.11%.
The stock has gained 16.24% in the last 3 days.
The share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. The share has lost 40.48% in one year and fallen 33.6% since the beginning of this year.
Sobha Ltd's total sales volume stood at 8.91 lakh square feet in the second quarter, registering a sequential improvement but volumes fell around 14% year-on-year (y-o-y). Quarterly sales run-rate in the pre-covid period was around 10 lakh square feet. Further, its dependency on Bengaluru sales volume reduced from 74% during Ql-FY21 to 60% during Q2-FY21.
"We are also pleased to inform that we have achieved higher sales value in Q2-21 as compared to Q2-20. We continue to perform well in Bengaluru but dependency on Bengaluru sales volume has reduced from 74% during Ql-21 to 60% during Q2-21" the real estate firm said.
The global research firm retained the outperform call and raised the target to Rs 270 from Rs 252 per share.
"While we concede sales for the quarter could come with limited up-front cash commitment, and may be susceptible to more cancellations, but is still reflective of the strength of a superior brand to be able to garner sales in difficult circumstances," said a report by Kotak Institutional Equities on October 6.
Sobha Limited is engaged in the construction and development of residential and commercial projects. The company is also engaged in contractual projects. Its residential projects include luxury and super luxury apartments, villas, row houses, plotted development and aspirational homes.