ICICI Direct: Buy Sobha; target of Rs 590

Research report on Sobha by CICI DirectIn addition to ongoing real estate projects, Sobha Ltd (Sobha) has ongoing contractual projects totaling 3.3 m sq ft that are under construction at various stages, including 14.1 million square feet of unsold saleable area. The company has delivered 120 million square feet of developable area as of Q4FY22.The company has a presence in ten cities, including Bengaluru, Gurugram, Chennai, Pune, Coimbatore, Thrissur, Kozhikode, Kochi, Gujarat (Gift City), and Mysore.OutlookAlthough the price has corrected sharply, muted growth guidance and revisiting contractual business remain uncertainties. We value Sobha at Rs 590/share, due to lower volumes, higher cost of capital and 20% discount to NAV.Please click here to see all recommendations.Moneycontrol.com disclaims responsibility for the views and investment tips expressed by investment experts/brokers/rating agencies, not the website or its management. Before making any investment decisions, Moneycontrol.com recommends that users consult certified experts.ICICI Sobha 230522