Kotak Inititates Coverage on Sobha Developers

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.

Read the entire report here.[PDF]

Sobha Developers Land Bank.
Sobha Developers IPO Coverage.