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Sobha Limited
(SOBHA)
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Rating:54Neutral
Price Target:
₹1,388.00
▲(1.82% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by strong recent revenue growth and a significantly improved balance sheet with much lower leverage. Offsetting this, profitability has deteriorated and cash-flow conversion remains uneven, while technical indicators show weak momentum and valuation is stretched due to a high P/E and low dividend yield.
Positive Factors
Integrated in‑house execution
Sobha’s integrated model — planning, construction and project execution done in-house — is a durable competitive advantage. It improves control over timelines, quality and costs across projects, supports consistent delivery, and lowers reliance on external contractors when scaling developments over months.
Negative Factors
Margin erosion
Significant fall in gross and operating margins versus historical mid-30% levels materially reduces earnings resilience. Lower margins limit ability to absorb input-cost pressure or slower sales, constraining profit generation and cushion available for reinvestment or dividend support over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated in‑house execution
Sobha’s integrated model — planning, construction and project execution done in-house — is a durable competitive advantage. It improves control over timelines, quality and costs across projects, supports consistent delivery, and lowers reliance on external contractors when scaling developments over months.
Read all positive factors
Sobha Limited (SOBHA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹134.70B
Dividend Yield0.48%
Average Volume (3M)5.67K
Price to Earnings (P/E)59.0
Beta (1Y)1.57
Revenue Growth32.15%
EPS Growth121.84%
CountryIN
Employees4,451
SectorGeneral
Sector StrengthN/A
IndustryReal Estate - Development
Share Statistics
EPS (TTM)21.56
Shares Outstanding106,953,835
10 Day Avg. Volume6,938
30 Day Avg. Volume5,670
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)2.69
Price to Sales (P/S)2.45
P/FCF Ratio48.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,690.00Price Target Upside23.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)48.79
Revenue Forecast (FY)₹61.68B
Sobha Limited Business Overview & Revenue Model
Company Description
Headquartered in Bengaluru, India, Sobha Limited is a prominent Indian enterprise established in 1995, specializing in the development, construction, sale, and management of a diverse portfolio of residential and commercial properties. Initially k...
How the Company Makes Money
Sobha Limited primarily makes money from real estate development by (1) selling completed units and (2) selling under-construction units (typically via customer collections linked to construction milestones). Revenue is generated from the sale/tra...
Sobha Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.17B | 51.90B | 40.17B | 30.63B | 32.75B | 25.56B |
| Gross Profit | 15.36B | 10.70B | 13.27B | 11.37B | 11.57B | 11.26B |
| EBITDA | 5.60B | 5.03B | 4.10B | 3.64B | 4.36B | 5.84B |
| Net Income | 2.31B | 1.93B | 946.86M | 491.13M | 1.04B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 195.18B | 172.21B | 136.96B | 125.76B | 115.42B |
| Cash, Cash Equivalents and Short-Term Investments | 14.90B | 15.04B | 18.09B | 705.48M | 9.23B | 3.28B |
| Total Debt | 0.00 | 10.57B | 11.83B | 19.40B | 20.27B | 25.29B |
| Total Liabilities | -47.20B | 147.98B | 126.61B | 111.82B | 100.81B | 91.19B |
| Stockholders Equity | 47.20B | 47.20B | 45.61B | 25.14B | 24.95B | 24.23B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.61B | -288.88M | 5.23B | 10.27B | 8.01B |
| Operating Cash Flow | 0.00 | 4.69B | 1.02B | 6.47B | 11.50B | 8.21B |
| Investing Cash Flow | 0.00 | -2.55B | -12.53B | -4.75B | -2.37B | 382.70M |
| Financing Cash Flow | 0.00 | -1.66B | 11.63B | -3.38B | -7.73B | -8.84B |
Sobha Limited Technical Analysis
Negative
1363.15
Price Trends
1366.09
Negative
1374.27
Negative
1400.64
Negative
Market Momentum
-32.08
Positive
37.26
Neutral
31.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOBHA, the sentiment is Negative. The current price of 1363.15 is above the 20-day moving average (MA) of 1292.74, below the 50-day MA of 1366.09, and below the 200-day MA of 1400.64, indicating a bearish trend. The MACD of -32.08 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 31.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOBHA.
Sobha Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹1.69T | 37.97 | ― | 1.17% | -27.71% | -0.86% | |
70 Outperform | ₹1.21T | 29.58 | ― | 0.35% | 26.04% | 38.93% | |
69 Neutral | ₹681.75B | 25.93 | ― | 0.43% | 29.10% | 27.52% | |
62 Neutral | ₹599.44B | 37.30 | ― | 0.50% | 18.11% | 5.18% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹134.70B | 59.04 | ― | 0.48% | 32.15% | 121.84% | |
46 Neutral | ₹227.08B | 26.28 | ― | 0.29% | 4.81% | -7.86% |
* General Sector Average
IN:SOBHA
Sobha Limited
1,259.40
-174.77
-12.19%
IN:BRIGADE
Brigade Enterprises Limited
696.00
15.89
2.34%
IN:DLF
DLF Limited
681.20
-67.21
-8.98%
IN:GODREJPROP
Godrej Properties Limited
1,990.00
36.30
1.86%
IN:LODHA
Macrotech Developers Ltd.
1,214.40
37.34
3.17%
IN:OBEROIRLTY
Oberoi Realty Limited
1,875.00
259.35
16.05%
Sobha Limited Corporate Events
Sobha to Transfer Long-Unclaimed Dividends and Shares to Investor Protection Fund
Jun 2, 2026
Sobha Limited has informed stock exchanges that it has published newspaper advertisements regarding the proposed transfer of unclaimed dividends and corresponding equity shares to the Investor Education and Protection Fund. The move pertains to sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.