Sobha shares could be poised for a sharp re-rating as record first-half sales, a strong pipeline of new residential projects and an expected recovery in profit margins strengthen the real estate developer's growth outlook.
Domestic brokerage house HDFC Securities sees the stock rising to ₹1,930, implying an upside of over 66% from its October 9 closing price of ₹1,161.70 hinging on the execution of planned launches, sustained demand and the expected improvement in margins.
HDFC Securities said: “Given the robust launch pipeline, strong BS, and stable CF, we maintain BUY with a TP of INR 1,930/sh.”
The brokerage expects Sobha to clock sales of more than ₹10,000 crore in FY27, supported by new launches across Bengaluru, the National Capital Region (NCR) and Pune.
In its recent research report, the brokerage said Sobha’s presales remained resilient in the September quarter despite a sequential decline following a record performance in the preceding quarter. It also highlighted the company’s strong launch pipeline, pricing strength and execution capabilities as factors supporting its growth outlook for the remainder of FY27.