SOBHA, another realty stock with great potential. a good pick.
Hello traders,
Previously an idea was posted on godrejprop, this is another realty stock at a good dip as well with a great potential.
the realty sector is expected to boom in 2023.
let us look onto a short note on fundamentals of SOBHA.
A short description of the company:
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities.
The Co. is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products.
Key points to note:
Real Estate (64% of the revenue, FY21)- It includes the sale of housing and commercial leasing of properties.
Contractual and Manufacturing (36%)- It comprises the development of commercial premises and other related activities, including manufacturing activities related to interiors, glazing and metal works, and concrete products.
Corporate Clients
Co.‘s corporate clients include LuLu group, Biocon, Dell, Bosch, Syngene, Taj Hotels, HCL, ITC Hotels, Huawei Technologies, and many more.
Self-reliance through Backward Integration
It is the only company in the sector to have a full-fledged backward integrated model of operations.
Under the backward integration model, the Co. has three manufacturing divisions - Glazing and Metal Works, Interiors and Concrete Products which are used for the manufacturing of houses. It also has a very high-end mattress manufacturing unit under the brand name Sobha Restoplus, started in 2007.
High Concentration in Bengaluru
Sobha has a presence in the residential segment in 10 cities and its overall footprint extends to 27 cities in 14 states across India. However, the company derives 67% of the revenue only from Bangalore.
Commercial Portfolio
As of Mar 2020, the Co. had two commercial malls in this business vertical, the "Sobha City" Mall in Thrissur with a total developable area of 0.44 million square feet, and the “One Sobha” mall in Bangalore with a total developable area of 0.23 million square feet.
Ongoing Projects
As of FY21, the company has real estate
projects aggregating 30.11 million square feet
of developable area. It has 5.64 million square
feet of ongoing contractual projects which
are under various stages of construction.
New Project Launched in FY21
SOBHA launched new projects to the tune
of 2.89 million square feet during FY21.
The Company opened its first flagship retail showroom under the 'metercube' brand with an area of 29,526 square feet at Bengaluru.
Healthy Order Book The company has received orders worth Rs. 2,126 crore only from the Contractual and Manufacturing segment, which is 1.4 times the FY2020 revenues from the segment.
Capex incurred in FY20 and FY21
In FY20, Co. added 239 Cr in the Fixed Assets, mainly on scaffolding items and additions to Plant and Machinery and it incurred a Capex of 15 Crores in FY 21.
Also SOBHA has recorded its highest ever sales in volume and value wise as its Q3 sales booking rise 36%.
The average price realisation improved to Rs 9,650 per square feet, up 21.9 per cent from the corresponding quarter of last year.
Achieved highest-ever quarterly sales volume of 1.47 million square feet, with an increase of 11.6 per cent compared to the previous year.
During April-December period of this fiscal, Sobha Ltd's sales bookings rose to Rs 3,734.4 crore from Rs 2,760.6 crore a year ago.
In the first nine months of this fiscal, the company achieved total sale of 4.17 million square feet, an increase of 16.9 per cent over the preceding year.
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if you look at the charts, there is a reversal from a strong support/resistance zone and is looking good to buy at cmp.
if we also look onto the longer timeframe, there has been observed a darvas box consolidation breakout and the stock is currently giving a retest.
Given below are the links of my ideas of my other long term picks that are recently posted. Do check it out :)
Market has crashed so few of our stocks have corrected from our entry prices. Don't worry, these companies are fundamentally good and therefore we can keep accumulating on dips.
As always, simple and neat charts so everyone can understand and not make it too complicated.
Will be posting more such ideas like this. Until that, like share and follow :)
check my other ideas to get to know about all the successful trades based on price action.
Thanks,
Aniket.
keep learning and keep earning.
Previously an idea was posted on godrejprop, this is another realty stock at a good dip as well with a great potential.
the realty sector is expected to boom in 2023.
let us look onto a short note on fundamentals of SOBHA.
A short description of the company:
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities.
The Co. is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products.
Key points to note:
Real Estate (64% of the revenue, FY21)- It includes the sale of housing and commercial leasing of properties.
Contractual and Manufacturing (36%)- It comprises the development of commercial premises and other related activities, including manufacturing activities related to interiors, glazing and metal works, and concrete products.
Corporate Clients
Co.‘s corporate clients include LuLu group, Biocon, Dell, Bosch, Syngene, Taj Hotels, HCL, ITC Hotels, Huawei Technologies, and many more.
Self-reliance through Backward Integration
It is the only company in the sector to have a full-fledged backward integrated model of operations.
Under the backward integration model, the Co. has three manufacturing divisions - Glazing and Metal Works, Interiors and Concrete Products which are used for the manufacturing of houses. It also has a very high-end mattress manufacturing unit under the brand name Sobha Restoplus, started in 2007.
High Concentration in Bengaluru
Sobha has a presence in the residential segment in 10 cities and its overall footprint extends to 27 cities in 14 states across India. However, the company derives 67% of the revenue only from Bangalore.
Commercial Portfolio
As of Mar 2020, the Co. had two commercial malls in this business vertical, the "Sobha City" Mall in Thrissur with a total developable area of 0.44 million square feet, and the “One Sobha” mall in Bangalore with a total developable area of 0.23 million square feet.
Ongoing Projects
As of FY21, the company has real estate
projects aggregating 30.11 million square feet
of developable area. It has 5.64 million square
feet of ongoing contractual projects which
are under various stages of construction.
New Project Launched in FY21
SOBHA launched new projects to the tune
of 2.89 million square feet during FY21.
The Company opened its first flagship retail showroom under the 'metercube' brand with an area of 29,526 square feet at Bengaluru.
Healthy Order Book The company has received orders worth Rs. 2,126 crore only from the Contractual and Manufacturing segment, which is 1.4 times the FY2020 revenues from the segment.
Capex incurred in FY20 and FY21
In FY20, Co. added 239 Cr in the Fixed Assets, mainly on scaffolding items and additions to Plant and Machinery and it incurred a Capex of 15 Crores in FY 21.
Also SOBHA has recorded its highest ever sales in volume and value wise as its Q3 sales booking rise 36%.
The average price realisation improved to Rs 9,650 per square feet, up 21.9 per cent from the corresponding quarter of last year.
Achieved highest-ever quarterly sales volume of 1.47 million square feet, with an increase of 11.6 per cent compared to the previous year.
During April-December period of this fiscal, Sobha Ltd's sales bookings rose to Rs 3,734.4 crore from Rs 2,760.6 crore a year ago.
In the first nine months of this fiscal, the company achieved total sale of 4.17 million square feet, an increase of 16.9 per cent over the preceding year.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
if you look at the charts, there is a reversal from a strong support/resistance zone and is looking good to buy at cmp.
if we also look onto the longer timeframe, there has been observed a darvas box consolidation breakout and the stock is currently giving a retest.
Given below are the links of my ideas of my other long term picks that are recently posted. Do check it out :)
Market has crashed so few of our stocks have corrected from our entry prices. Don't worry, these companies are fundamentally good and therefore we can keep accumulating on dips.
As always, simple and neat charts so everyone can understand and not make it too complicated.
Will be posting more such ideas like this. Until that, like share and follow :)
check my other ideas to get to know about all the successful trades based on price action.
Thanks,
Aniket.
keep learning and keep earning.
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