Strong Q2 sales performance despite headwinds a positive trigger for Sobha

Its ability to reduce debt is crucial for further gains

The stock of Bengaluru-based real estate major Sobha was up 10 per cent in trade on Tuesday, after the company reported a steady sales performance in the September quarter. 

Despite multiple headwinds for the realty space, the company reported 1 per cent year-on-year (YoY) increase in sales value to Rs 690 crore. Brokerages highlighted a resilient performance by the company for the second consecutive quarter after the June quarter sales of Rs 488 crore. 

Though there was a lockdown in Bengaluru in July, the company saw healthy momentum in Q2FY21. The city usually accounts for 70-75 per cent of Sobha's total sales.