Kotak Securities has initiated coverage on Sobha Developers Ltd. For the first time, I am very impressed by the way Kotak has covered the company. Kotak sets a price target of Rs 940 on Sobha Developers.
Kotak forward estimates Sobha’s Real Estate Business at Rs 855 / share and value of contractual business at Rs 85 / share. Sobha has a total Land Bank of 3,624 acres and a Land Arrangement of 3,558 acres. Bangalore’s IT & ITeS will be the key driver for Sobha’s growth. Interest Rate and decline in Real Estate prices can hurt Sobha’s prospects. Sobha is mainly dependant on Infosys for contractual work.
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