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Sobha Developers drops 5.4% in 2 days

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Capital Market
Last Updated : Jan 07 2014 | 11:55 PM IST

Sobha Developers lost 2.46% to Rs 315 at 14:09 IST on BSE, with the stock extending Monday's 3.03% slide triggered by the company reporting weak sales volume in Q3 December 2013.

Meanwhile, the S&P BSE Sensex was down 78.42 points or 0.38% at 20,708.88.

On BSE, so far 5,035 shares of were traded in the counter as against average daily volume of 15,431 shares in the past one quarter.

The stock hit a high of Rs 328 and a low of Rs 315 so far during the day. The stock had hit a 52-week low of Rs 214.10 on 4 September 2013. The stock had hit a 52-week high of Rs 472.40 on 13 February 2013.

The stock had underperformed the market over the past one month till 6 January 2014, sliding 6.65% compared with the Sensex's 1% fall. The scrip had also underperformed the market in past one quarter, advancing 1.32% as against Sensex's 4.38% rise.

The company has equity capital of Rs 98.06 crore. Face value per share is Rs 10.

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Shares of Sobha Developers have declined 5.41% in two trading sessions from a recent high of Rs 333.05 on 3 January 2014 after the company after market hours on 3 January 2014 said that its sales volume declined 17.77% at 0.74 million square feet in Q3 December 2013 over Q3 December 2012. The stock had declined 3.03% to settle at Rs 322.95 on Monday, 6 January 2014.

Sobha Developers' sales value declined 5.83% at Rs 502.30 crore in Q3 December 2013 over Q3 December 2012. Average price realization rose 14.82% at Rs 6,786 per square feet in Q3 December 2013 over Q3 December 2012.

During the quarter (Q3 December 2013), the company has launched Elan (a joint development residential project with Lakshmi Machine Works) in Coimbatore having a total saleable area of 0.32 million square feet (msf) and Sobha Estate (plotted development) in Mysore having a total saleable area of 0.13 msf. Both the new launches have generated a positive response from the customers, Sobha said in a statement.

Sobha said that it remains upbeat about the company's key South Indian markets despite a lower sales volume during the quarter. The company also anticipates an uptick in the sales momentum in the coming quarters due to proposed new launches across its existing markets.

Sobha had at the beginning of the fiscal set a guidance of new sales area of 4.20 msf valued at Rs 2600 crore for the current fiscal (FY 2014). At the close of three quarters of FY 2014, the company has registered new sales area of 2.66 msf valued at Rs 1737 crore. While the company is able to maintain better sales realizations and generated consistent operational cash flows, it remains cautious about achieving its guidance set for the current fiscal, Sobha said in a statement.

Sobha Developers' consolidated net profit rose 13% to Rs 56.60 crore on 30.4% growth in net sales to Rs 540 crore in Q2 September 2013 over Q2 September 2012.

Sobha Developers is a real estate developer. It is primarily focused on residential and contractual projects.

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First Published: Jan 07 2014 | 2:07 PM IST

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