ICICI Securities Initiates Coverage of Sobha, Sets Price Target at Rs 1,669
ICICI Securities Upgrades Sobha Ltd. to BUY
Sobha Ltd. (SOBHA) has announced impressive financial results for the fiscal year 2026, with sales bookings reaching 5.5 million square feet (msf) worth INR 81.4 billion, marking a 30% year-over-year (YoY) increase in value terms. The company is set to launch approximately 10msf across Bengaluru, Gurugram, and other key markets in the upcoming fiscal year 2027, as it aims to achieve a 30% YoY sales booking growth to INR 106 billion.
In its research report, ICICI Securities has upgraded its rating for Sobha Ltd. to BUY from Add, with a revised target price (TP) of INR 1,669, which is higher than the previous target price of INR 1,519. This upgrade is based on the company's expected higher realisations.
| Fiscal Year | Gross Sales Bookings (INR billion) |
|---|---|
| FY26 | 81.4 |
| FY27E | 104 |
| FY28E | 124 |
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The company's focus on improving its reported EBITDA margins, which have been in single-digits between FY25 and FY26, will be a key monitorable over FY27-28. ICICI Securities currently models gross sales bookings of INR 104/INR 124 billion for FY27E and FY28E, respectively, based on the 20msf launch pipeline till FY28.
Investor Takeaway
Investors should consider buying Sobha Ltd. with a target price of Rs 1,669.
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