The shares of this midcap company have fallen up to 4 percent after Anamudi Real Estate LLP, owned by Godrej Group, is likely to sell 5 percent equity share in the company.
Sobha Ltd has a market capitalization of Rs 19,283.78 crore, the shares were trading at Rs 1,803.85 per share, decreasing around 3.15 percent as compared to the previous closing price of Rs 1,862.50 apiece.
Reason for fall:-
As of July 11, 2024, Anamudi Real Estate LLP holds 1.06 crore equity shares which is equivalent to 9.99 percent of Sobha Limited, however, Anamudi Real Estate LLP, owned by Godrej Group, is likely to offload 47.4 lakh equity shares which is equivalent to 5 percent in the company. This transaction is valued at Rs 865 crore.
Financial analysis:-
Examining the company’s financial performance, revenue plummets by 37 percent, from Rs 1,209.93 crore in Q4 FY23 to Rs 762.86 crore in Q4 FY24. During the same period, net profit dropped by 86 percent, from Rs 48.58 crore to Rs 7.03 crore.
Operational cash flow:-
The firm produced its highest-ever collection in FY24, up 9.7 percent from FY23, with real estate collections increasing by 16.9% to Rs. 50.34 billion and contracts and manufacturing collections at Rs. 7.62 billion.
The company spends on construction about Rs. 21.84 bn, up by 18.9% compared to FY23, with an increased allocation of Rs. 3.47 bn reflecting the growing scale of business; Completed 4.40 mn sft across regions
Remarkable return:-
The stock has delivered returns of 34.41 percent in the last six months and a multi-bagger return of 190.27 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.90 lakh in a year.
Company profile:-
Sobha Limited is an Indian real estate developer. The Company builds, develops, sells, manages, and operates townships, housing complexes, and commercial properties, among other things. The company works in two segments: real estate and contractual and manufacturing.
Written by:- Abhishek Singh
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