Sobha Limited (SOBHA) AI Stock Analysis

• Market Cap: ₹160.08B
• Dividend Yield: 0.2%
• Average Volume (3M): 12.33K
• Price to Earnings (P/E): 154.0
• Beta (1Y): 1.90
• Revenue Growth: 50.22%
• EPS Growth: 118.84%
• Country: IN
• Employees: 3,814
• Sector: Real Estate
• Sector Strength: 48
• Industry: Real Estate - Development
• EPS (TTM): 1.30
• Shares Outstanding: 106,953,835
• 10 Day Avg. Volume: 11,131
• 30 Day Avg. Volume: 12,334
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹1,644.75
• Price Target Upside: 8.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: ₹1,580.00 ▲(4.02% Upside)

Sobha Limited's overall stock score is primarily impacted by its mixed financial performance and weak technical indicators. The high P/E ratio suggests overvaluation, while the low dividend yield offers limited income potential. The lack of earnings call data and corporate events further limits positive influences on the score.

Sobha Limited Business Overview & Revenue Model

Company Description

Sobha Limited, established in 1995, is one of India's leading real estate developers, with a strong presence in both residential and commercial construction. Headquartered in Bangalore, the company is renowned for its commitment to quality and excellence in the real estate sector. Sobha specializes in developing luxury residential apartments, villas, plotted developments, and commercial office spaces. The company also operates a robust contractual business, providing interior solutions and construction services to various clients across India and the Middle East.

How the Company Makes Money

Sobha Limited generates revenue primarily through the sale and lease of residential and commercial properties. The company engages in both the development and sale of luxury residential projects, which include apartments, villas, and plots. Additionally, Sobha earns income from its contractual business, which involves providing turnkey construction services and interior solutions to third-party clients. This segment contributes significantly to the company's revenue, as it includes prestigious projects for corporates and government entities. Sobha's diversified business model, combining real estate development with contractual services, allows it to capitalize on multiple revenue streams and maintain financial stability. The company also benefits from strategic partnerships and joint ventures, which enhance its project portfolio and market reach.

Sobha Limited Financial Statement Overview

Summary

Sobha Limited shows strong cash flow generation and improved leverage, but inconsistent revenue growth and declining net profit margins are concerns. The company has a solid equity base but faces potential liquidity issues due to fluctuating free cash flow.

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	35.61B	40.39B	30.97B	32.75B	25.56B	21.07B
Gross Profit	11.62B	8.78B	11.53B	12.08B	11.26B	11.59B
EBITDA	3.55B	4.18B	3.67B	4.31B	5.95B	7.56B
Net Income	608.61M	946.86M	491.13M	1.04B	1.73B	622.76M
Balance Sheet
Total Assets	0.00	172.21B	136.96B	125.76B	114.10B	112.10B
Cash, Cash Equivalents and Short-Term Investments	13.00B	18.09B	1.31B	9.23B	3.28B	4.03B
Total Debt	0.00	11.83B	19.92B	20.27B	25.29B	33.22B
Total Liabilities	-35.06B	126.61B	111.82B	100.81B	89.00B	87.82B
Stockholders Equity	35.06B	45.61B	25.14B	24.95B	25.11B	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: 1518.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1518.9 is below the 20-day moving average (MA) of 1552.47, below the 50-day MA of 1553.12, and above the 200-day MA of 1421.77, indicating a neutral trend. The MACD of -17.47 indicates Positive momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 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
Sector *	65 Neutral	$2.04B	16.92	4.00%	5.06%	1.74%	-1.63%
ANANTRAJ	63 Neutral	₹186.25B	40.38		0.14%	33.04%	50.76%
SOBHA	58 Neutral	₹160.08B	153.97		0.20%	50.22%	118.84%
SIGNATURE	54 Neutral	₹155.03B	121.66		―	100.84%	363.26%
MAHLIFE	47 Neutral	₹75.33B	66.92		0.79%	-28.49%	-22.69%
PURVA	47 Neutral	₹68.47B	80.66		2.18%	-24.76%	-449.08%