'Buy' Sobha Shares Maintains HDFC Securities On Multiple Growth Triggers

Valuation comfort, robust free cash flow generation, and likely deleveraging are key near-term triggers for Sobha's further rerating, says HDFC Securities.

H2 FY26 is expected to see an even stronger momentum, with Sobha's big launches including Gurgaon Sector 63A, Pune, Mumbai, and Bengaluru.

(Photo Source: Sobha official website)

Sobha reported a strong Q1 FY26 presales performance, up 11% YoY to Rs 20.8 billion, driven by robust sustenance sales in Gurugram, Bengaluru, and other markets (Rs 10 billion), along with healthy new launches contributing Rs 10.8 billion (72% of the Rs 15 billion launched gross development value). The company also delivered 1.07 msf across key projects, showcasing its execution strength and in-house development capabilities.

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HDFC Securities Institutional Equities

Sobha Ltd. has laid out plans to expand in the MMR market from FY26, ramp up its presence in Pune and NCR, and consolidate in Bengaluru. Valuation comfort, robust free cash flow generation, and likely deleveraging are key near-term triggers for further rerating.

Given the robust launch pipeline, strong balance sheet, and stable cash flows, we maintain Buy on Sobha with a target price of Rs 2,459/share.

Click on the attachment to read the full report:

HDFC Securities Institutional Equities Sobha - Update.pdf
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