Bengaluru based
Sobha Developers de-leveraged its balance sheet over the past three years, Sobha is now accelerating the pace of its new launches, execution and cash collection. Run-rate of net operating cash flows in FY12 has been 2x the debt servicing related interest cost outflow, making Sobha one of only two listed developers generating net cash surplus from ongoing operations without relying on alternative strategies like land sales or low margin products like affordable housing/plotted developments.
With a strong brand built around quality and speed of execution in a relatively stable real estate market like Bengaluru, Sobha is well placed to monetize its land bank of 2,500 acres over the next 15-20 years. REcommend a HOLD on the Stock with a Target Price of Rs 400.
