Sobha Ltd
SOBHA NSE
Sobha Ltd
Consumer DiscretionaryNSE: SOBHA BSE: 532784 Realty
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities. The Co. is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products. [1]
AI Verdict: HOLD Confidence: 5%
Sobha Ltd shows strong revenue momentum with 29% TTM sales growth and 104% TTM profit growth, backed by 87.5% analyst buy ratings. However, a PE of 78.8x, low 3-year ROE of just 3%, and heavy reliance on other income (Rs.193 Cr) make the risk-reward unfavorable at current levels.
Key Fundamentals
SmallcapResidential Commercial ProjectsRealtyMarket Cap
₹15,335 Cr
Volatility
Moderate
P/E Ratio
77.88
EBITDA
₹310 Cr
Return on Equity
1.95%
Debt to Equity
0.44
Book Value
₹441.39
EPS
₹4.55
52W High
₹1,732.5
52W Low
₹1,130
Technical Indicators
Key Insights
Strengths
4- Company is expected to give good quarter
- Company has delivered good profit growth of 25.5% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 41.7%
- Company's working capital requirements have reduced from 52.6 days to 34.7 days
Weaknesses
3- Stock is trading at 3.24 times its book value
- Company has a low return on equity of 3.16% over last 3 years.
- Earnings include an other income of Rs.193 Cr.
Growth Rate
Revenue Growth
24.69% ↘
Net Income Growth
-37.42% ↘
Cash Flow Change
-69.12% ↘
ROE
6.67% ↘
ROCE
-38.62% ↘
EBITDA Margin (Avg.)
-42.69% ↘
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoHOLD
Risk high
Sobha Ltd shows strong revenue momentum with 29% TTM sales growth and 104% TTM profit growth, backed by 87.5% analyst buy ratings. However, a PE of 78.8x, low 3-year ROE of just 3%, and heavy reliance on other income (Rs.193 Cr) make the risk-reward unfavorable at current levels.
Bull Case 8
- Strong analyst consensus with 87.5% buy ratings (14 out of 16 analysts recommend buy) and zero sell ratings
- TTM profit growth of 104% signals a sharp earnings recovery and potential re-rating catalyst
- Compounded sales growth of 29% TTM and 20% over 5 years demonstrates consistent top-line expansion
- Working capital efficiency improved significantly from 52.6 days to 34.7 days, freeing up cash flow
- 5-year compounded profit CAGR of 25.5% reflects sustained earnings momentum over a longer cycle
- Stock CAGR of 40% over 3 years and 17% over 10 years shows strong long-term wealth creation track record
- Healthy dividend payout ratio of 41.7% indicates shareholder-friendly capital allocation despite growth phase
- Company is expected to deliver a good upcoming quarter per consensus estimates, providing near-term positive trigger
Bear Case 8
- PE ratio of 78.8x is extremely stretched for a real estate company with cyclical earnings, pricing in significant future growth
- 3-year ROE of just 3% is well below cost of equity, indicating poor capital efficiency despite profit growth
- Earnings quality concern as other income of Rs.193 Cr forms a material portion of profits, inflating headline numbers
- Stock trading at 3.23x book value is expensive given the low single-digit ROE, implying unjustified premium
- Negative 1-year stock CAGR of -5% indicates recent price correction and loss of momentum despite strong fundamentals
- 10-year compounded profit growth of only 3% reveals that the recent surge is a recovery rather than structural improvement
- Dividend yield of just 0.21% offers negligible income protection in a downturn despite high payout ratio
- 5-year ROE averaging only 4% suggests the business structurally struggles to generate adequate returns on equity
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago Neutral 3
- 31st AGM scheduled July 18 Jun 24
Sobha Limited will hold its 31st AGM on July 18, 2026 via video conferencing, with electronic-only distribution of notice and Annual Report 2025-26.
- Promoters hold 52.88% unencumbered May 27
Promoters hold 52.88% stake in Sobha Limited for FY26 with zero encumbrances on their shareholding.
- Unclaimed FY19 dividend to IEPF Jun 2
Unclaimed dividends for FY 2018-19 and related shares will be transferred to IEPF on October 15, 2026. Shareholders must claim by September 15, 2026.
TL;DR: Recent news flow for Sobha is purely procedural with no material business updates, earnings signals, or sector-specific catalysts. Promoter holding at 52.88% with no encumbrance is a mild governance positive but already known. No headwinds or bullish triggers are evident from these disclosures. Investors should watch for Q1 FY27 sales bookings and launch pipeline updates for directional cues.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,210 | 908 | 741 | 685 | 763 | 640 | 934 | 1,224 | 1,241 | 852 | 1,408 | 943 | 1,988 |
| Expenses | 1,094 | 843 | 666 | 611 | 701 | 584 | 856 | 1,157 | 1,147 | 828 | 1,312 | 905 | 1,836 |
| Operating Profit | 116 | 65 | 75 | 74 | 62 | 56 | 77 | 67 | 94 | 24 | 96 | 39 | 152 |
| OPM % | 10% | 7% | 10% | 11% | 8% | 9% | 8% | 5% | 8% | 3% | 7% | 4% | 8% |
| Other Income | 30 | 31 | 32 | 29 | 28 | 29 | 32 | 33 | 30 | 49 | 62 | 40 | 42 |
| Interest | 61 | 61 | 64 | 61 | 59 | 54 | 49 | 47 | 45 | 31 | 32 | 30 | 44 |
| Depreciation | 18 | 18 | 19 | 20 | 21 | 20 | 23 | 23 | 23 | 24 | 26 | 28 | 28 |
| PBT | 67 | 17 | 25 | 21 | 11 | 11 | 36 | 29 | 56 | 19 | 99 | 21 | 122 |
| Tax % | 27% | 30% | 39% | 29% | 36% | 45% | 28% | 26% | 27% | 27% | 27% | 25% | 25% |
| Net Profit | 49 | 12 | 15 | 15 | 7 | 6 | 26 | 22 | 41 | 14 | 73 | 15 | 92 |
| EPS in Rs | 4.54 | 1.13 | 1.4 | 1.41 | 0.66 | 0.57 | 2.44 | 2.03 | 3.82 | 1.27 | 6.78 | 1.44 | 8.59 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,441 | 1,943 | 2,229 | 2,783 | 3,442 | 3,754 | 2,110 | 2,561 | 3,310 | 3,097 | 4,039 | 5,190 |
| Expenses | 1,823 | 1,499 | 1,809 | 2,263 | 2,769 | 2,639 | 1,435 | 2,028 | 2,941 | 2,820 | 3,744 | 4,880 |
| Operating Profit | 617 | 444 | 420 | 520 | 673 | 1,115 | 675 | 533 | 370 | 277 | 294 | 310 |
| OPM % | 25% | 23% | 19% | 19% | 20% | 30% | 32% | 21% | 11% | 9% | 7% | 6% |
| Other Income | 15 | 36 | 52 | 50 | 73 | 72 | 81 | 84 | 92 | 121 | 124 | 193 |
| Interest | 188 | 164 | 150 | 198 | 236 | 682 | 601 | 308 | 249 | 246 | 196 | 137 |
| Depreciation | 72 | 60 | 64 | 54 | 62 | 72 | 79 | 72 | 68 | 78 | 90 | 106 |
| PBT | 372 | 257 | 258 | 317 | 448 | 433 | 75 | 237 | 145 | 74 | 133 | 260 |
| Tax % | 34% | 46% | 38% | 32% | 34% | 35% | 17% | 27% | 28% | 34% | 29% | 26% |
| Net Profit | 244 | 138 | 161 | 217 | 297 | 282 | 62 | 173 | 104 | 49 | 95 | 193 |
| EPS in Rs | 21.52 | 12.48 | 14.8 | 20.27 | 27.76 | 26.32 | 5.82 | 16.19 | 9.74 | 4.59 | 8.86 | 18.09 |
| Div. Payout % | 29% | 14% | 15% | 31% | 22% | 24% | 53% | 16% | 27% | 58% | 34% | 33% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 98 | 98 | 96 | 95 | 95 | 95 | 95 | 95 | 95 | 95 | 107 | 107 |
| Reserves | 2,334 | 2,467 | 2,548 | 2,675 | 2,134 | 2,336 | 2,333 | 2,328 | 2,400 | 2,419 | 4,454 | 4,613 |
| Borrowings | 2,059 | 2,180 | 2,222 | 2,331 | 2,604 | 3,131 | 3,052 | 2,529 | 2,027 | 1,940 | 1,183 | 1,057 |
| Other Liabilities | 1,666 | 3,317 | 4,027 | 3,924 | 5,907 | 5,448 | 5,729 | 6,578 | 8,054 | 9,228 | 11,461 | 13,740 |
| Total Liabilities | 6,157 | 8,062 | 8,893 | 9,025 | 10,740 | 11,010 | 11,208 | 11,530 | 12,576 | 13,682 | 17,205 | 19,518 |
| Fixed Assets | 315 | 373 | 595 | 610 | 678 | 919 | 903 | 852 | 899 | 946 | 1,005 | 1,104 |
| CWIP | 52 | 45 | 1 | 0 | 0 | 0 | 0 | 0 | 2 | 5 | 0 | 0 |
| Investments | 0 | 229 | 0 | 112 | 113 | 114 | 114 | 115 | 115 | 115 | 115 | 120 |
| Other Assets | 5,789 | 7,415 | 8,298 | 8,302 | 9,949 | 9,976 | 10,191 | 10,564 | 11,560 | 12,615 | 16,085 | 18,294 |
| Total Assets | 6,157 | 8,062 | 8,893 | 9,025 | 10,740 | 11,010 | 11,208 | 11,530 | 12,576 | 13,682 | 17,205 | 19,518 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -216 | 388 | 354 | 353 | 206 | 294 | 613 | 826 | 1,150 | 647 | 200 | 430 |
| Investing | -60 | -245 | 2 | -129 | -61 | -307 | -33 | 38 | -237 | -475 | -1,180 | -97 |
| Financing | 337 | -133 | -345 | -243 | -86 | -84 | -483 | -889 | -773 | -338 | 993 | -285 |
| Net Cash Flow | 61 | 11 | 10 | -18 | 58 | -97 | 96 | -25 | 140 | -166 | 13 | 48 |
| Free Cash Flow | -280 | 281 | 322 | 294 | 102 | -7 | 573 | 873 | 1,034 | 524 | 70 | 224 |
| CFO/OP | -21 | 101 | 100 | 84 | 44 | 36 | 95 | 165 | 330 | 262 | 122 | 213 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 26 | 47 | 37 | 43 | 35 | 35 | 34 | 50 | 17 | 19 | 17 | 19 |
| Inventory Days | — | — | — | 5,289 | — | — | — | — | 10,072 | — | 10,343 | 2,063 |
| Days Payable | — | — | — | 788 | — | — | — | — | 688 | — | 519 | 133 |
| Cash Conversion Cycle | 26 | 47 | 37 | 4,544 | 35 | 35 | 34 | 50 | 9,401 | 19 | 9,841 | 1,950 |
| Working Capital Days | 279 | 665 | 344 | 261 | 68 | 101 | 155 | 154 | 67 | 19 | 104 | 35 |
| ROCE % | 14% | 9% | 8% | 10% | 14% | 21% | 12% | 10% | 8% | 7% | 6% | 7% |
Documents
2
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
2d - SOBHA Q4 FY26 call: record FY26 sales of ₹8,136 crore, PAT ₹193 crore, net cash positive, FY27 launch plans. 2d - SOBHA Q4 FY26 call: record FY26 sales of ₹8,136 crore, PAT ₹193 crore, net cash positive, FY27 launch plans.
3
Compliances-Reg.24(A)-Annual Secretarial Compliance
6 May - Sobha filed FY26 secretarial compliance report; most requirements complied, prior minor issues rectified. 6 May - Sobha filed FY26 secretarial compliance report; most requirements complied, prior minor issues rectified.
4
Announcement under Regulation 30 (LODR)-Change in Management
1d - SOBHA reports resignations of Chief Design Officer Geetha K. Nair and COO Shanthi V, effective May 4, 2026. 1d - SOBHA reports resignations of Chief Design Officer Geetha K. Nair and COO Shanthi V, effective May 4, 2026.
5
Sobha Limited Has informed About Statement Of Deviation(S) Or Variation(S) Under Reg. 32 Of SEBI LODR Regulations, 2015.
4 May - Sobha reported rights issue proceeds utilization for quarter ended March 31, 2026; Rs 1,777.74 crore used. 4 May - Sobha reported rights issue proceeds utilization for quarter ended March 31, 2026; Rs 1,777.74 crore used.
Frequently Asked Questions about Sobha Ltd
What does Sobha Ltd do?
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities.
The Co. is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete...
Where is Sobha Ltd (SOBHA) listed?
Sobha Ltd is listed on the Indian stock exchanges. It is listed on NSE: SOBHA and BSE: 532784. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Sobha Ltd belong to?
Sobha Ltd operates in the Consumer Discretionary sector within the Realty industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Sobha Ltd?
Sobha Ltd has a market capitalisation of approximately ₹15335.23 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Sobha Ltd?
The Price-to-Earnings (PE) ratio of Sobha Ltd is 77.88. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Sobha Ltd?
Over the past 52 weeks, Sobha Ltd has traded between a low of ₹1,130 and a high of ₹1,732.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Sobha Ltd pay dividends?
Yes, Sobha Ltd has a dividend yield of 0.21%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Sobha Ltd?
Sobha Ltd has a Return on Equity (ROE) of 1.95%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Sobha Ltd on Tapetide?
On Tapetide, you can view Sobha Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities. The Co. is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products. [1]
Website sobha.com
CEO Mr. Jagadish Nangineni B.Tech Civil, PGDM
Employees 4,483
Listed 2006-12-20
Face Value ₹ 10
Issued Size 10,69,32,806