Sobha slips 6% after posting Q3 update; here's what's worrying investors?

Sobha Ltd shares lost 6.2 per cent in Wednesday's trade on BSE, logging an intraday low at Rs 1,417.85 per share. The selling pressure in the stock came after the company released its Q3 business update.

 

At close, Sobha share price was down 5.19 per cent at Rs 1433.4 per share on BSE. In comparison, the BSE Sensex was down 0.06 per cent at 78,148.49. The market capitalisation of the company stood at Rs 15,330.76 crore. The 52-week high of the stock stood at Rs 2,179.81 per share and the 52-week low of the stock stood at Rs 1,176.01 per share.

 

In its Q3 update, released on Tuesday after market hours, Sobha reported a 28.8 per cent decline in year-on-year (Y-o-Y) total sales to Rs 1,388.6 crore as compared to Rs 1,951.6 crore a year ago. On a sequential basis, total sales increased 17.8 per cent.

 

The company's sales value decreased 28 per cent Y-o-Y to Rs 1,249.9 crore as compared to Rs 1,735.5 crore a year ago. However, sales value increased 27 per cent on a quart-on-quarter (Q-o-Q) basis.  

 

As per the filing, Sobha’s share in Q3-FY25 is 90 per cent (highest ever) of total sales due to high contribution from SOBHA Neopolis and SOBHA Ayana. Both projects are being developed on own land 

 

SOBHA Ayana contributed to more than 50 per cent of overall Bangalore sales value in Q3-FY25. For the first 9 months of FY25, 4.66 mn sft across 6 projects in 4 cities were launched.

 

SOBHA Ayana with a total saleable area of 1,130,711 sft, was launched during the quarter, in Bangalore. The project comprised 12 wings and 683 apartments with 3-bedroom configurations, with sizes ranging from 1,553 sft to 1,789 sft. The project is part of SOBHA Dream Acres and is located on Panathur Main Road. The location is off Marathahalli-Outer Ring Road, which has a high density of office spaces and hence has witnessed strong demand.

 

Sobha Ltd. is a real estate developer in India, renowned for its high-quality residential and commercial developments. As per its website, the company has a national footprint in over 27 cities in 14 states including Bengaluru, Chennai, Pune, Delhi and so on.

 

In the past one year, Sobha shares have gained 19.79 per cent against Sensex's rise of 9.5 per cent.