Share of Sobha Limited rose 9 per cent to hit an intraday high of Rs 535.00 on BSE after the company reported its Q1FY22 operational update.
The company said the residential real estate sector has been showing encouraging signs of structural revival in the recent past with better preparedness and having already adapted to digital tools.
It further added that the impact of the second wave was sudden, severe, prolonged, and visible in major metro cities, also in cities where Sobha operates, and in rural areas.
The company informed that it was able to withstand the adverse impact of two successive pandemic waves and show its resilience in Q1 FY22.
The stock opened 5 per cent higher at Rs 514.90 against the previous close of Rs 490.90 on BSE. Market cap of the firm rose to Rs 4,869.39 crore.
The stock has gained 116 per cent in the last one year and risen 24 per cent since the beginning of this year. The share stands higher than 5 day, 10 day and 20 day, 50 day 100 day, 200 day moving averages.
There have been some positive disruptions, especially for the services sector. Large number of people are getting used to concepts like - work from home, work near home, digitally-enabled spaces, and larger living spaces.
The company achieved a total sales volume of 895,539 square feet of super built-up area valued at Rs 683 crore. Bengaluru sales volume has grown by 37% as compared to Q1 FY21 despite the stringent impact of COVID second wave during the quarter. The average cost of borrowing has further come down during the quarter.
"We believe, with the increased vaccination drive and effective lockdowns, the second wave has been contained. Economic activities have started opening, and it is expected that normalcy will return in the second half of FY-2021-22. However, we cannot completely rule out uncertainties and likely impact caused by the second wave of the pandemic. We are also unsure about how and when the third wave will strike and with what consequences," the company said.
"However, we have planned new launches of 13.35 million square feet, and we intend to take it ahead. We believe SOBHA is strong enough to withstand any impact with resilience and is confident of keep improving its market share in the residential space, it added.
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