From mint · Pranati Deva · · 1m 30s
HDFC Securities targets Sobha stock at ₹1,930
HDFC Securities sees 66% upside for Sobha stock with ₹1,930 target.
In brief
HDFC Securities sees 66% upside for Sobha stock with ₹1,930 target. HDFC Securities maintains a buy rating on Sobha with a target price of ₹1,930, implying 66% upside from its October 9 close of ₹1,161.70. Originally reported by mint.
Sobha stock down 21% in 3 months
Sobha shares have fallen 21% in three months, though HDFC Securities sees 66% upside potential.
HDFC Securities sets ₹1,930 target
HDFC Securities maintains a buy rating on Sobha with a target price of ₹1,930, over 66% above its October 9 close.
Record presales in Q2FY27
Sobha recorded presales worth ₹2,210 crore in Q2FY27, up 16% year-on-year but down 40% quarter-on-quarter.
Strong launch pipeline
Sobha launched two projects covering 1.03 million square feet in Calicut and Mysore during the first half of FY27.
Expected margin improvement
HDFC Securities expects Sobha’s margins to improve meaningfully from the second half of FY27 as revenue recognition increases.
Growth across key markets
Bengaluru contributed ₹1,310 crore, or 60% of presales, while NCR and Kerala accounted for ₹590 crore and ₹300 crore respectively.
HDFC Securities' FY27 sales estimate
HDFC Securities expects Sobha to clock sales exceeding ₹10,000 crore in FY27, representing 70% year-on-year growth.
Projected earnings for FY27
Adjusted profit after tax is estimated at ₹674 crore in FY27, up from ₹310 crore in FY26.
What happens next
Sobha shares could rise to ₹1,930 if planned launches and margin improvements are executed as expected.
The bottom line
HDFC Securities maintains a buy rating on Sobha with a target price of ₹1,930, implying 66% upside from its October 9 close of ₹1,161.70.
