Sobha rallies 14% in declaring best sales volume ever in September quarter
Shares of property developer Sobha rose 14% to a new 52-week high of Rs 868.45 on BSE in intraday trading on Thursday after the company said it achieved the best sales volume of 1.35 million square feet valued at Rs 1,030.2 crore in the July-September quarter (Q2FY22). The company had reported a total sales value of Rs 682.90 crore in Q1FY22 and Rs 689.90 crore in Q2FY21.
Structural changes in the real estate industry have never created opportunities before for established, financially strong, multi-site-based developers to capitalize on the gradual but stable recovery in housing demand, Sobha said in her update. operational in the second quarter of fiscal year 22.
The consensus of most industry experts remains that working from home, low interest rates, increased affordability, significant upturn in prospects for the IT industry and rising wages, etc. the sustainability of demand, the company said. “The steady reduction in unsold inventory and the recovery in demand are pulling the housing market out of the down cycle. Prices are soaring. This, along with the potential market share gains, puts organized developers in an ideal location, ”he added.
Overall sales were mainly driven by good sales figures in Bengaluru, Gurugram, Pune and GIFT CITY, noted ICICI Securities. “The sales volume execution rate is at similar levels to T4FY21 (pre-wave 2) and implies a strong recovery. The pull of the coming festive quarter is likely to come. More importantly, debt, which has remained high, will be the main controllable item, ”ICICI Securities added.
As of 12:22 p.m., Sobha’s stock was up 14% to Rs 861 on BSE, compared to a 1.1% rise for the S&P BSE Sensex. Over-the-counter trading volumes tripled, with a total of 2.15 million shares changing hands on the NSE and BSE.