Sobha Developers to rise in next 30 days: Morgan Stanley

Says the property developer is on track to meet its Rs 20 billion target in new sales for 2013

Morgan Stanley said the share price of Sobha Developers is expected to rise in absolute terms over the next 30 days as the stock has traded off recently, making short-term valuation much more compelling.

"Sobha stock is down 20% from its recent peak two months back, and now trades at 11.5 times F14 expected EPS and a 40% discount to forward net asset value, which we believe are inexpensive valuations," Morgan Stanley said in a note dated March 28.

The investment bank added that the property developer continued to steadily scale up new launches and is on track to meet its Rs 20 billion target in new sales for 2013.

 

Sobha shares were trading 7% higher at Rs 372.75 as on 11:07 am.