(Reuters) -Indian homebuilder Sobha reported second-quarter profit that more than doubled on Friday, helped by high prices and sustained demand for premium apartments.
The Bengaluru-based real estate company said its consolidated net profit rose to 725.3 million rupees ($8.2 million) from 260.9 million rupees a year ago.
Revenues rose 50.7% to 14.08 billion rupees.
KEY CONTEXT
Residential real estate developers have experienced robust growth this year, with Sobha posting record sales in the June quarter, with cuts in India’s consumption tax and interest rates expected to further spur consumer demand.
Sales for the second-quarter rose 61% to 19.03 billion rupees.
While Sobha did not have any launches this quarter, pre-sales from its existing inventory aided.
For the rest of the year, demand for residential apartments is expected to remain healthy, especially for branded and credible developers that offer prime gated projects in metro cities, analysts have said.
Peers Prestige Estates Projects and Brigade Enterprises have yet to report their earnings.
PEER COMPARISON
Valuation (next 12 Estimates Analysts
months) (next 12 ‘
months) sentimen
t
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth rating* analyst price yield
(%) s target** (%)
Sobha Ltd SOBH.NS 35.08 22.70 NULL 20.10 87.26 BUY 14 0.81 0.19
Prestige Estates PREG.NS 43.86 18.16 NULL 39.99 82.64 BUY 19 0.91 0.11
Projects Ltd
Brigade Enterprises BRIG.NS 24.36 13.49 NULL 21.12 28.42 BUY 9 0.74 0.26
Ltd
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
($1 = 88.0560 Indian rupees)
(Reporting by Komal Salecha in Bengaluru; Editing by Janane Venkataraman)
