Sobha Can Rally 37% Says Motilal Oswal On Strong Growth Prospects

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Motilal Oswal Report

Sobha Ltd. continues to provide strong growth visibility by unlocking its vast land reserves. Additionally, the strong cash flows will enable the company to focus on new land acquisitions, which will further enhance its growth pipeline.

We incorporate the updated launch pipeline and new projects acquired during the year. The ongoing and upcoming projects are valued at Rs 75 billion after deducting future land acquisitions and adjusting for incremental business development during the year.

Our land reserve estimated for Sobha is ~165 msf and is valued at Rs 87 billion assuming 25-75 years of monetization.

We reiterate our Buy rating on the stock with a revised target price of Rs 1,803 (previously Rs 1,714), indicating a 37% upside potential.

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