Sobha shares plunge over 4% post Q3 operational update

Shares of the residential and commercial projects major- Sobha traded with a cut of over 3 per cent in Wednesday's trade after the company's operational update for the December quarter. After opening in the red, the stock at the day's low hit Rs 1,446.45, plunging as much as 4 per cent from the previous close of Rs 1,511.90.

For the review quarter, the company's total sales declined 29 per cent year-on-year (YoY) to Rs 1,388.6 crore. "In Q3-FY25, SOBHA recorded sales value of Rs. 13.88 billion supported by new sales area of 1.01 mn sft at an average price realization of Rs. 13,663 per sft," said the company in its exchange filing.

However, on a quarter-on-quarter (QoQ) basis, the sales value recorded 17.8 per cent growth.

The company's sales value decreased 28 per cent YoY to Rs 1,249.9 crore in comparison to Rs 1,735.5 crore a year ago. However, sales value increased 27 per cent sequentially.

Sobha’s share in Q3-FY25 is 90 per cent (highest ever) of total sales due to high contribution from SOBHA Neopolis and SOBHA Ayana. Both projects are being developed on own land, said the company's filing with the exchanges.

Further it noted that SOBHA Ayana contributed to more than 50 per cent of overall Bangalore sales value in the December quarter. For the first 9 months of FY25, 4.66 mn sft across 6 projects in 4 cities were launched.

 Average realization improved by 31.3 per cent over the same period last year to Rs 14,226 per sft, aided by price increases in ongoing projects and higher realization in the new project launches during the year.

New launches in Q3-FY25:

SOBHA Ayana with a total saleable area of 1,130,711 sft, was launched during the quarter, in Bangalore. Project comprises of 12 wings and 683 apartments with 3 bedroom configuration, with sizes ranging from 1,553 sft to 1,789 sft.  This project is part of SOBHA Dream Acres and located on Panathur Main Road. 

Analysts' view on Sobha post Q3 business update

Analysts at domestic brokerage SBI Securities are neutral to negative on the stock in the short term.

Sobha share price performance 

The stock of Sobha in the last one year has gained 19 per cent against Nifty Realty's return of over 19 per cent during the same period.