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Sobha shares rally 8% after record sales bookings in March quarter

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Sobha shares rally 8% after record sales bookings in March quarter

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Shares of realty firm Sobha Ltd rallied over 8 percent in early trade on Tuesday after the company posted record sales bookings during the last fiscal year despite the COVID-19 pandemic.

Sobha shares rally 8% after record sales bookings in March quarter
Shares of realty firm Sobha Ltd rallied over 8 percent in early trade on Tuesday after the company posted record sales bookings during the last fiscal year despite the COVID-19 pandemic.
The Bengaluru-based developer said it achieved a total sales volume of 40,13,381 square feet valued at Rs 3,137 crore in FY21.
"Total sales value achieved during FY20-21 is the highest ever in the history of the company," the company said in a regulatory filing.
During the quarter ended March 2021, the company achieved the best-ever total sales volume of 13,37,707 square feet of super built-up area valued at Rs 1,072 crore.
“Due to consistent demand across all the product segments at sustainable prices, we were able to achieve best ever price realization of Rs 8,014 per square feet amongst last 8 quarters,” the company said.
In Q4FY21, sales volume, total sales value, and total price realisation were up by 48 percent, 54 percent, and 5 percent respectively as compared to Q4FY20.
Sales volume achieved by Bengaluru, Gurugram, Pune, and Kochi regions is the highest ever, it said.
“Despite COVID-19 impact during Q1-21, Gurugram, Kochi, Thrissur, and Pune have surpassed their sales performance as compared to FY19-20,” Sobha said.
Excluding Bengaluru, other regions' total contribution to overall sales volume and value is the highest in the history of the company, it added. In the fourth quarter of last fiscal, sales bookings grew 54 percent to Rs 1,072 crore from Rs 694.5 crore in the previous year.
Brokerage firm Morgan Stanley maintained an Overweight rating on the stock with a target price of Rs 573 per share as it believes that valuations were attractive at current levels.
The brokerage said that Sobha’s Q4 details underline the theme of a revival in India’s housing market.
“Sobha’s readiness to benefit from this demand and improving balance sheet keeps us Overweight,” Morgan Stanley said.
At 10:05 am, the shares of Sobha were trading 6.73 percent higher at Rs 458.90 apiece on the BSE.
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