BSE Code ........ 532784 | Target 1 .... ₹537 | Target 2 .... ₹555 I CMP : ₹470
Despite stricter RERA regulations and subdued demand for realty, Sobha achieved new sales volumes of 8.6 lakh sq.ft. amounting to Rs 675 crore with average realisation of Rs 784/sq.ft. during Q2FY18. The c ompany posted 15.6% sales growth in Q2FY18, while it reported annual revenue and PAT growth of 14.7% and 16.4%, respectively, in FY17. Going forward, Pradhan Mantri Awas Yojana, coupled with decelerating inflation and reducing interest rates would help the entire sector and the company to increase its market share. The stock, after registering a high of Rs 583.80 in the month of June 2014, entered into a corrective phase and made a low of around Rs 230, and thereafter, it witnessed a pullback rally which was shortlived. However, the stock formed a strong base around the levels of Rs 216-230 and entered into an up trend, but it failed to close above the level of Rs 430 on a weekly basis. At present, the stock has witnessed breakout of downward sloping trend and additionally, as on week ended October 13, 2017, the stock had formed biggest bull candle since May 2017 along with robust volumes, which suggests active participation by the bulls.