Sobha Developers gains after credit rating upgrade

Sobha Developers rose 1.23% to Rs 275 at 14:53 IST on BSE after credit rating company, ICRA, upgraded the long-term rating of the company from ICRA BBB+ to ICRA A-.

Sobha Developers made the announcement during trading hours today, 18 September 2013.

Meanwhile, the BSE Sensex was up 90.71 points, or 0.46%, to 19,894.74.

On BSE, 3,210 shares were traded in the counter compared with average volume of 25,454 shares in the past one quarter.

The counter turned volatile after the company made the announcement. The stock rose 3.41% at the day's high of Rs 280.90. It fell 0.24% at the day's low of Rs 271.

The stock hit a 52-week low of Rs 214.10 on 4 September 2013. The stock hit a 52-week high of Rs 472.40 on 13 February 2013.

The stock had underperformed the market over the past one month till 17 September 2013, falling 0.29% compared with the Sensex's 6.48% rise. The scrip had also underperformed the market in past one quarter, sliding 26.84% as against Sensex's 2.47% rise.

The small-cap company has an equity capital of Rs 98.06 crore. Face value per share is Rs 10.

Sobha Developers said that ICRA, upgraded the long-term rating of the company's fund-based working capital limits of Rs 365 crore, term loans of Rs 648 crore and non fund-based working capital limits of Rs 125 crore to 'ICRA A- (Stable)' from 'ICRA BBB+ (Positive)'.

Sobha Developers' consolidated net profit rose 11.3% to Rs 50.10 crore on 6.7% growth in net sales to Rs 461 crore in Q1 June 2013 over Q1 June 2012.

Sobha Developers is a real estate developer. It is primarily focused on residential and contractual projects.

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