Real Estate Stock To Mull Fund Raising, Up 139% In 6-Months: Motilal Oswal Gives Buy Call

Mid cap company operating in real estate sector, Sobha Limited shares today witnessed a decline of 2.94%. The company has scheduled meeting of Board of Directors on Jan 22, 2024 to consider the proposal of fund raising via rights issue. Last trading price of Sobha Limited shares on BSE is Rs 1325.85 apiece. Brokerage firm Motilal Oswal has already raised buy call for the stock and kept it in the category of top stock pick for 2024.

The analyst has assigned buy call to Sobha Limited shares with target price of Rs 1400 apiece. If you buy Sobha Limited shares at last trading price of Rs 1325.85, you can fetch potential gain of 5.59%. Sobha Limited shares soared 71% in last 3-months and rose 175% in last 3-years. Check details below:

Sobha Limited To Consider Fund Raising: As per the BSE filing of the company dated Jan 17, 2024, "A meeting of the board of directors of the Company ("Board") is scheduled to be held on Monday, 22nd day of January, 2024, to consider, inter alia, the proposal of fund raising by way of equity shares through rights issue as may be permitted under applicable law, subject to such regulatory and statutory approvals as may be required under the applicable laws."

Sobha Limited Valuation: According to Motilal Oswal, "We factor in higher launches over FY24-26E and hence revise our pre-sales estimates by 4%/12% for FY24/FY25. We also introduce FY26 estimates. We revise our TP to INR1,400 and we rate SOBHA as our top idea for CY24."

After underperforming its listed peers on pre-sales growth over FY21-23, we believe SOBHA is set to outperform in terms of growth given its focus on unlocking its vast land reserve and exploring external growth opportunities through its healthy balance sheet. The outperformance is also expected to be driven by improvements in profitability. Further, visibility in the monetization of some of its large land parcels in Bengaluru will lead to a re-rating in its implied land valuation, added the analyst.

Sobha Limited Stock Performance & Return: The 52-week high price of Sobha Limited share on BSE is Rs 1406.00 per share and 52-week low price is Rs 412.40 per share, respectively. Sobha Limited has a market capitalisation of Rs 12,575 crore. Sobha Limited shares gained 126% in last 1-year, and rose 174% in last 3-years. In last 5-years, Sobha Limited shares surged 164%.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.