Sobha Ltd. (SOBHA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Brookfield India

Mindspace Busine

Nexus Select

Anant Raj

Brigade Enterpr.

Kalpat.

Mahindra Life

Sobha

Embassy Develop

SignatureGlobal

Sri Lotus

Why is Sobha Ltd. ?

Weak Long Term Fundamental Strength with a -26.39% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.04
The company has been able to generate a Return on Equity (avg) of 3.62% signifying low profitability per unit of shareholders funds

Flat results in Dec 25

NET SALES(Q) At Rs 943.11 cr has Fallen at -20.1% (vs previous 4Q average)
PBT LESS OI(Q) At Rs -19.46 cr has Fallen at -367.0% (vs previous 4Q average)
PAT(Q) At Rs 15.43 cr has Fallen at -58.5% (vs previous 4Q average)

With ROE of 3.2, it has a Expensive valuation with a 3.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.20%, its profits have risen by 134% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sobha for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sobha

12.2%

0.33

36.51%

Sensex

7.18%

0.64

11.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.49%

EBIT Growth (5y)

-26.39%

EBIT to Interest (avg)

1.04

Debt to EBITDA (avg)

5.04

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.63

Tax Ratio

26.71%

Dividend Payout Ratio

57.94%

Pledged Shares

Institutional Holding

32.04%

ROCE (avg)

7.74%

ROE (avg)

3.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

109

Industry P/E

Price to Book Value

3.36

EV to EBIT

96.54

EV to EBITDA

58.07

EV to Capital Employed

3.88

EV to Sales

3.30

PEG Ratio

1.01

Dividend Yield

0.21%

ROCE (Latest)

4.89%

ROE (Latest)

3.22%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

PAT(Latest six months)

At Rs 87.96 cr has Grown at 84.09%

DEBT-EQUITY RATIO(HY)

Lowest at 0.23 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,896.28 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 26.74 times

-12What is not working for the Company

NET SALES(Q)

At Rs 943.11 cr has Fallen at -20.1% (vs previous 4Q average

PBT LESS OI(Q)

At Rs -19.46 cr has Fallen at -367.0% (vs previous 4Q average

PAT(Q)

At Rs 15.43 cr has Fallen at -58.5% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 194.79 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Sobha

Debt-Equity Ratio - Half Yearly

Lowest at 0.23 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,896.28 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Highest at 26.74 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sobha

Net Sales - Quarterly

At Rs 943.11 cr has Fallen at -20.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,181.07 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -19.46 cr has Fallen at -367.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 7.29 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 15.43 cr has Fallen at -58.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 37.18 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 194.79 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT