Sobha hits fresh 52-week high post Q3 operational update

The stock surged 14% to Rs 687, also its fresh 52-week high on BSE after real estate firm reported 92% jump in sales bookings to Rs 7.5 billion in Q3FY18.

Sobha surged 14% to Rs 687, also its fresh 52-week high on BSE in early morning trade, after real estate firm reported 92% jump in sales bookings to Rs 7.5 billion during the quarter ended December 2017 (Q3FY18) on higher volumes and better average realisation. It had sold properties worth Rs 3.9 billion in the year ago period.

Sobha sold 933,365 sq ft (square feet) area during the third quarter, up 52% from 6,13,652 sq ft in the same period last fiscal, the company said in Q3 operational update.

The average price realisation increased to Rs 8,045 per sq ft from Rs 6,369 per sq ft during the period under review, it added.

During April-December period of this fiscal, Sobha's sales bookings increased by 41% to nearly Rs 20.5 billion compared to Rs 14.55 billion in the corresponding period of the previous year. In the first nine months of this fiscal, the company has crossed the sales bookings figure of entire last fiscal of Rs 20.12 billion.

According to the company, despite the implementation of big ticket policy initiatives, the tangible benefits for the real estate market are yet to reflect. As a result, the last three quarters saw subdued sales and new launches, making it a difficult phase for the sector.

Sobha expects that it would be able to sustain this improvement in operational performance in the coming quarters as well.

At 09:38 AM; the stock was trading 8% higher at Rs 655, against 0.49% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 722,613 shares changed hands on BSE and NSE so far.