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    Buzzing stock | Sobha jumps 5% but erases initial gains soon after

    Buzzing stock | Sobha jumps 5% but erases initial gains soon after

    Buzzing stock | Sobha jumps 5% but erases initial gains soon after
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    By CNBCTV18.com  IST (Published)

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    Sobha share price: Shares of Sobha rose as much as 5 percent on Friday on the back of an encouraging business update. However, the stock failed to hold on to initial gains. During FY22, the company achieved best ever sales volume and sale value despite operational hurdles at the start of quarter due to Omicron wave.

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    Buy / Sell Sobha share

    Shares of Sobha rose as much as 5 percent on Friday on the back of an encouraging business update. However, the stock failed to hold on to initial gains. At 9:56 am, the stock was trading 0.2 percent higher at Rs 714.15 on BSE.
    During FY22, the company achieved the best-ever sales volume and sale value despite operational hurdles at the start of the quarter due to the Omicron wave.
    During FY22, Bengaluru, Pune, Gurugram, and GIFT City regions have shown high growth in terms of sales value and volume which is the highest ever since inception, Sobha said.
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    Cash flows during the year remain strong resulting in net debt reduction as compared to FY21, the company said. Its average cost of borrowing has further come down during the quarter, the company said.
    “We have improved the price realisation from past few quarters, which would act as margin protection against recent cost increase,” Sobha said in an exchange filing.
    Due to consistent demand across all the product segments and price increases, Sobha was able to achieve the best ever price realisation of Rs 8,265 per square foot.
    “We expect this momentum to continue into FY23-24E with ~13msf of planned launches, and model for 5.9/6.4msf of sales volumes in FY23/24E,” said ICICI Securities.
    The domestic brokerage house has maintained its ‘buy’ rating on shares of Sobha with an unchanged target price of Rs 902.
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