Top Stock Pick For 2024: Buy Mid Cap Real Estate Stock, TP Rs 1400: Motilal Oswal

Motilal Oswal has recommended investors to buy mid cap Real Estate sector stock Sobha Limited with target price of Rs 1400 apiece. Last trading price of Sobha Limited share on BSE is Rs 1333.50 per share with intraday surge of 19.42%. Sobha Limited shares offered shareholders an attractive return of 133% in last 6-months only. Sobha Limited has a market capitalisation of 12,490 crore. Sobha Limited shares hit back to back 52-week high on January 3 and January 4. Check details below:

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 1339.95 per share and 52-week low price is Rs 412.40 per share, respectively. Sobha Limited shares gained 24% year-to-date, soared 27% in last 1-week only, and offered return of 118% in last 1-year. In last 3-years, Sobha Limited shares offered return of 216%.

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.