Sobha Limited (SOBHA) AI Stock Analysis

• Market Cap: ₹163.14B
• Dividend Yield: 0.2%
• Average Volume (3M): 9.14K
• Price to Earnings (P/E): 109.7
• Beta (1Y): 1.88
• Revenue Growth: 56.34%
• EPS Growth: 152.41%
• Country: IN
• Employees: 3,814
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 6.80
• Shares Outstanding: 106,953,835
• 10 Day Avg. Volume: 14,425
• 30 Day Avg. Volume: 9,144
• PEG Ratio: 1.62
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 3.00
• P/FCF Ratio: -419.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,725.00
• Price Target Upside: 12.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: ₹1,568.00 ▲(2.28% Upside)

Sobha Limited's overall stock score is primarily influenced by its mixed financial performance, characterized by strong cash flow generation but inconsistent revenue growth and declining profitability. The technical analysis suggests bearish momentum, while the high P/E ratio indicates overvaluation. These factors collectively contribute to a moderate stock score.

Sobha Limited Business Overview & Revenue Model

Company Description

Sobha Limited (SOBHA) is a prominent Indian real estate development company, known for its commitment to quality and luxury. Established in 1995, the company operates primarily in the residential and commercial sectors, focusing on the development of integrated townships, villas, apartments, and commercial properties. Sobha is recognized for its meticulous craftsmanship and has built a reputation for delivering premium properties across various regions in India. The company's core services include real estate development, project management, and construction services.

How the Company Makes Money

Sobha Limited generates revenue through multiple streams primarily derived from the sale of residential and commercial properties. The company develops and sells high-end residential projects, including luxury apartments and villas, which constitute a significant portion of its income. Additionally, Sobha engages in the construction of commercial properties, such as office spaces and retail outlets, contributing to its revenue. The company also derives income from project management and construction contracts for third-party clients, further diversifying its revenue base. Sobha has established strategic partnerships with various stakeholders, including government bodies and private developers, which facilitate its project execution and expand its market reach. Overall, the company’s emphasis on quality construction, brand reputation, and strategic location selection plays a crucial role in its financial performance.

Sobha Limited Financial Statement Overview

Summary

Sobha Limited exhibits strengths in cash flow generation and improving leverage. However, inconsistent revenue growth and declining net profit margins raise concerns about profitability. The company maintains a solid equity base, but variability in free cash flow indicates potential liquidity issues.

Income Statement

Sobha Limited's income statement shows a mixed performance. The gross profit margin has been relatively stable, but there is a significant decline in net profit margin, indicating some pressure on profitability. Revenue growth has been inconsistent with a notable dip in the latest year. The EBIT and EBITDA margins have shown some resilience but are still below industry benchmarks, suggesting room for improvement.

Balance Sheet

The balance sheet reveals a moderate financial health. The debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity remains modest, highlighting potential for maximizing shareholder returns. The equity ratio suggests a reasonable level of financial stability, but the company still carries significant liabilities.

Cash Flow

Sobha Limited's cash flow statement highlights strong operational cash generation, with operating cash flow improving considerably. Free cash flow, however, has fluctuated, showing a negative figure in the latest year, which might concern investors. The operating cash flow to net income ratio suggests efficient cash management, but the free cash flow to net income ratio indicates potential liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.50B	40.39B	30.97B	33.10B	25.61B	21.10B
Gross Profit	13.77B	13.33B	11.53B	11.78B	11.22B	11.53B
EBITDA	2.51B	2.87B	2.75B	3.70B	5.27B	6.69B
Net Income	1.02B	946.86M	491.13M	1.04B	1.73B	622.76M
Balance Sheet
Total Assets	0.00	172.21B	136.96B	125.76B	115.42B	112.10B
Cash, Cash Equivalents and Short-Term Investments	1.27B	18.09B	705.48M	9.23B	3.28B	4.03B
Total Debt	0.00	11.83B	19.40B	20.27B	25.29B	30.52B
Total Liabilities	-45.61B	126.61B	111.82B	100.81B	91.19B	87.82B
Stockholders Equity	45.61B	45.61B	25.14B	24.95B	24.23B	24.28B
Cash Flow
Free Cash Flow	0.00	-288.88M	5.23B	10.27B	8.01B	5.71B
Operating Cash Flow	0.00	1.02B	6.47B	11.50B	8.21B	6.13B
Investing Cash Flow	0.00	-12.53B	-4.75B	-2.37B	382.70M	-331.86M
Financing Cash Flow	0.00	11.63B	-3.38B	-7.73B	-8.84B	-4.83B

Sobha Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1533.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOBHA, the sentiment is Positive. The current price of 1533.1 is above the 20-day moving average (MA) of 1503.41, above the 50-day MA of 1510.02, and above the 200-day MA of 1401.71, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 71.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SOBHA.

Sobha Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANANTRAJ	66 Neutral	₹223.59B	46.23	―	0.12%	33.04%	50.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SOBHA	58 Neutral	₹163.14B	109.71	―	0.20%	56.34%	152.41%
SIGNATURE	54 Neutral	₹155.64B	120.90	―	―	100.84%	363.67%
MAHLIFE	48 Neutral	₹81.70B	72.58	―	0.73%	-28.49%	-22.69%
PURVA	48 Neutral	₹66.64B	-25.37	―	―	-24.76%	-449.05%

Sobha Limited Corporate Events

Sobha Limited Discusses Q2 FY ’26 Performance in Investor Call

Sobha Limited has released the transcript of a conference call held on October 18, 2025, with analysts and institutional investors. The call discussed the company’s operational and financial performance for the quarter ending September 30, 2025. This communication is part of Sobha’s ongoing efforts to maintain transparency with stakeholders and comply with regulatory requirements.

Sobha Limited Achieves Record Sales Growth in Q2 FY 2025-26

Sobha Limited reported a robust performance in Q2 FY 2025-26, with a 61.4% increase in real estate sales value compared to the previous year, reaching ₹19.03 billion. The company’s operations were bolstered by strong sales in Bangalore, NCR, and Kerala, contributing to its best-ever H1 performance with a total sales value of ₹39.81 billion. This growth aligns with India’s resilient economic expansion, supported by favorable macroeconomic conditions and an upgrade in the country’s credit rating, which has positively impacted real estate demand.

Sobha Limited’s Credit Rating Outlook Upgraded to Positive

Sobha Limited announced an update on its credit rating by India Ratings & Research, which has revised the company’s long-term issuer rating outlook from ‘Stable’ to ‘Positive’. This change reflects a positive shift in the company’s financial stability and could enhance its market position, potentially benefiting stakeholders by increasing investor confidence.