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You are here : IndiaNotes >> Research & Analysis >> Companies >> Sobha Ltd. >> Research

Shoba Ltd Q1FY18: Firstcall overweights scrip for medium and long term investments

Firstcall India Equity | 11 Aug, 2017  | Follow Author | Add to my Favourites 
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  • Sobha Limited is one of the fastest growing and foremost backward integrated real estate players in the country.

  • During Q1 FY18, consolidated net profit jumps to Rs. 477.00 million from Rs. 359.00 million in Q1FY17, an increase of 32.87%.

  • Consolidated revenue for the quarter increased by 18.34% to Rs. 6789.00 million as compared to Rs. 5737.00 million, when compared with the prior year period.

  • During Q1 FY18, consolidated EBIDTA is Rs.1312.00 million as against Rs. 1053.00 million in Q1FY17, grew by 24.60%.

  • During Q1 FY18, consolidated PBT increased by 34.32% to Rs. 728.00 million from Rs. 542.00 million in Q1 FY17.

  • EPS of the company stood at Rs. 4.95 a share during the quarter, as against Rs. 3.66 per share over previous year period.

  • The company registered a cash inflow of Rs. 7.30 bn as on June 30, 2017.

  • During the quarter, the company has generated net positive operational cash flows of Rs. 999 mn after meeting interest and tax expenses.

  • The company reduced its debt by Rs. 490 mn as on June 3oth 2017.

  • The company currently has ongoing real estate projects aggregating to 42.18 mn square feet of developable area and 30.22 mn square feet of saleable area, and ongoing contractual projects aggregating to 8.81mn square feet under various stages of construction.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 11% over 2016 to 2019E, respectively.


        OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 377.85, the stock P/E ratio is at 20.30 x FY18E and 17.93 x F Y19E respectively.

  • Earnings per share (EPS) of the company for the earnings for FY18E and FY19E are seen at Rs. 18.61 and Rs. 21.07 respectively.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 11% over 2016 to 2019E respectively.

  • On the basis of EV/EBITDA, the stock trades at 11.76 x for F Y18E and 10.67 x for FY19E.

  • Price to Book Value of the stock is expected to be at 1.29 x and 1.20 x for F Y18E and FY19E respectively.

  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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