Sobha Limited (IN:SOBHA)
:SOBHA
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Sobha Limited
(SOBHA)
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Rating:59Neutral
Price Target:
₹1,512.00
▲(1.33% Upside)
Action:Reiterated
Date:05/06/26
The score is primarily driven by improving financial stability (much lower leverage) and strong recent revenue growth, supported by constructive technical momentum. These positives are meaningfully tempered by compressed margins/uneven cash-flow conversion and a very demanding valuation (high P/E and low dividend yield).
Positive Factors
Improved leverage / balance-sheet health
A materially lower debt-to-equity (~0.22 in FY2026) meaningfully reduces refinancing and liquidity risk for a capital-intensive developer. This stronger capital structure increases financial flexibility to fund project completions, new launches or weather downturns over the coming months.
Negative Factors
Margin compression
Profitability has narrowed sharply (gross ~20.6%, EBITDA ~6.0%, net ~3.7%), reducing the buffer to absorb input-cost inflation or pricing pressure. Persistently compressed margins limit reinvestment capacity and make earnings more sensitive to execution setbacks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage / balance-sheet health
A materially lower debt-to-equity (~0.22 in FY2026) meaningfully reduces refinancing and liquidity risk for a capital-intensive developer. This stronger capital structure increases financial flexibility to fund project completions, new launches or weather downturns over the coming months.
Read all positive factors
Sobha Limited (SOBHA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹147.72B
Dividend Yield0.2%
Average Volume (3M)9.14K
Price to Earnings (P/E)74.1
Beta (1Y)1.52
Revenue Growth28.52%
EPS Growth99.08%
CountryIN
Employees3,814
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)9.85
Shares Outstanding106,953,835
10 Day Avg. Volume14,425
30 Day Avg. Volume9,144
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)2.69
Price to Sales (P/S)2.45
P/FCF Ratio48.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,516.50Price Target Upside1.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)47.88
Revenue Forecast (FY)₹59.50B
Sobha Limited Business Overview & Revenue Model
Company Description
Sobha Limited engages in the construction, development, sale, management, and operation of residential and commercial projects primarily in India. It operates through two segments, Real Estate, and Contractual and Manufacturing. The company's resi...
How the Company Makes Money
Sobha Limited primarily makes money through (1) real estate development sales and (2) contracting/construction and related services.
1) Real estate development (property sales): The core revenue stream is the sale of units in its residential (an...
Sobha Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.28B | 51.90B | 40.17B | 30.63B | 32.75B | 25.56B |
| Gross Profit | 13.84B | 10.70B | 13.27B | 11.37B | 11.57B | 11.26B |
| EBITDA | 3.98B | 3.10B | 4.10B | 3.64B | 4.36B | 5.84B |
| Net Income | 1.02B | 1.93B | 946.86M | 491.13M | 1.04B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 195.18B | 172.21B | 136.96B | 125.76B | 115.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 15.04B | 18.09B | 705.48M | 9.23B | 3.28B |
| Total Debt | 0.00 | 10.57B | 11.83B | 19.40B | 20.27B | 25.29B |
| Total Liabilities | -45.61B | 147.98B | 126.61B | 111.82B | 100.81B | 91.19B |
| Stockholders Equity | 45.61B | 47.20B | 45.61B | 25.14B | 24.95B | 24.23B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.61B | -288.88M | 5.23B | 10.27B | 8.01B |
| Operating Cash Flow | 0.00 | 4.69B | 1.02B | 6.47B | 11.50B | 8.21B |
| Investing Cash Flow | 0.00 | -2.55B | -12.53B | -4.75B | -2.37B | 382.70M |
| Financing Cash Flow | 0.00 | -1.66B | 11.63B | -3.38B | -7.73B | -8.84B |
Sobha Limited Technical Analysis
Negative
1492.15
Price Trends
1349.18
Negative
1396.48
Negative
1458.27
Negative
Market Momentum
-0.25
Positive
39.94
Neutral
24.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOBHA, the sentiment is Negative. The current price of 1492.15 is above the 20-day moving average (MA) of 1395.74, above the 50-day MA of 1349.18, and above the 200-day MA of 1458.27, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 24.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOBHA.
Sobha Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹595.53B | 23.67 | ― | 0.48% | 15.16% | 12.67% | |
70 Outperform | ₹1.44T | 32.43 | ― | 0.86% | 2.51% | 1.05% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | ₹878.67B | 25.69 | ― | 0.39% | 21.02% | 23.73% | |
59 Neutral | ₹147.72B | 74.06 | ― | 0.20% | 28.52% | 99.08% | |
55 Neutral | ₹513.50B | 27.58 | ― | ― | 21.54% | 24.63% | |
54 Neutral | ₹159.88B | 24.64 | ― | 0.28% | 12.28% | -6.98% |
* Real Estate Sector Average
IN:SOBHA
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.