Motilal Oswal Maintains 'Buy' Rating for Sobha, Targets Rs 1720

Sobha Logs Strong Demand, Maintains Robust Business Pipeline

Sobha, a leading real estate developer, has continued its momentum with the launch of three new projects in the fourth quarter of the fiscal year. The company introduced Sobha Rivana in Greater Noida, with a gross development value (GDV) of INR39 billion, Sobha Altair in East Bengaluru, with a GDV of INR7 billion, and Sobha Woods Whispering Hill in Trivandrum, with a GDV of INR3 billion.

The company's business development and launch pipeline remains healthy, with a total project pipeline of approximately 31.2 million square feet. This includes approximately 20.7 million square feet of upcoming residential developments, with a significant concentration of 15 million square feet in Bengaluru. Sobha has outlined a total of 10 million square feet of launches for the fiscal year 2027, spread across Bengaluru, Gurugram, Hyderabad, and Pune. Additional phases are planned in Kerala, including Calicut, and Bengaluru, while Chennai and Pune launches are expected subsequently.

The strong demand for Sobha's projects is evident from the sales performance of Phase 1 of the Gurugram project, Crescent, which was launched in April 2026 and has already achieved 50% sales. Furthermore, Phase 1 developments in Hoskote and Gurugram together account for 6.2 million square feet, providing near-term visibility. Sobha continues to invest in land acquisition, with a deployment of INR11.5-11.6 billion in the fiscal year 2026 and a similar outlay planned for the fiscal year 2027, targeting an annual addition of 10 million square feet.

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We reiterate our BUY rating on the stock with a target price of INR1,720, indicating a 19% upside potential.