Sobha Gets 35% Target Price Hike From Yes Securities On 'Buy' Initiation

After a subdued performance in FY25, Sobha has made a strong start to FY26 with record presales of Rs 20 billion in Q1 FY26. We estimate the company will achieve pre-sales of Rs 87 billion (Sobha’s share) by FY26-end, driven by a robust launch pipeline of ~7–8 msft across 5–6 key cities, with a total gross development value of Rs 100 billion.

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Yes Securities Report

We expect new launches and steady sustenance sales to drive Sobha Ltd.’s best-ever performance in FY26. Additionally, with healthy cash inflows, geographic diversification, and a strong balance sheet position the company well positioned for sustained growth.

Based on our NAV-driven valuation using a 13.5% WACC and a 20% premium, we arrive at a target price of Rs2,113, implying an upside potential of 35%.

Accordingly, we initiate coverage on Sobha with a Buy rating.

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