Sobha: Leverage, cash flows in coming quarters to be key triggers for stock

Debt reduction over past two quarters is also positive

Bengaluru-based realty player Sobha’s June quarter operational numbers were weak, dropping 28 and 39 per cent in volume and value terms, respectively, compared with sales in the March quarter. 

Though volumes were weak at 0.65 million square feet, analysts believe it was a reasonable performance given the lockdown in April and May. Volumes in June at 0.30-0.35 million square feet were around 80 per cent of the pre-Covid monthly run rate. 

The Bengaluru market, where enquiries are now back to pre-Covid levels, accounted for about 74 per cent of sales volumes. Its significant presence in the Bengaluru market is a positive as