BSE:532784

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Executive Summary

Sobha Limited engages in the construction, development, sale, management, and operation of residential and commercial projects primarily in India.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Sobha's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532784's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

532784

0.02%

IN Real Estate

1.1%

IN Market


1 Year Return

-59.2%

532784

-25.4%

IN Real Estate

-6.2%

IN Market

Return vs Industry: 532784 underperformed the Indian Real Estate industry which returned -25.4% over the past year.

Return vs Market: 532784 underperformed the Indian Market which returned -6.2% over the past year.


Shareholder returns

532784IndustryMarket
7 Day-0.5%0.02%1.1%
30 Day4.4%-0.3%7.3%
90 Day25.9%15.2%19.2%
1 Year-58.7%-59.2%-24.8%-25.4%-4.4%-6.2%
3 Year-40.8%-42.8%-22.3%-23.9%-2.3%-6.9%
5 Year-32.8%-35.4%15.7%11.4%22.2%12.9%

Price Volatility Vs. Market

How volatile is Sobha's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sobha undervalued compared to its fair value and its price relative to the market?

7.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532784 (₹232.1) is trading above our estimate of fair value (₹50.6)

Significantly Below Fair Value: 532784 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532784 is good value based on its PE Ratio (7.8x) compared to the IN Real Estate industry average (11.8x).

PE vs Market: 532784 is good value based on its PE Ratio (7.8x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: 532784 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 532784 is overvalued based on its PB Ratio (0.9x) compared to the IN Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Sobha forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532784's forecast earnings growth (12% per year) is above the savings rate (7.2%).

Earnings vs Market: 532784's earnings (12% per year) are forecast to grow slower than the Indian market (19.7% per year).

High Growth Earnings: 532784's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532784's revenue (5.7% per year) is forecast to grow slower than the Indian market (7.5% per year).

High Growth Revenue: 532784's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532784's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Sobha performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532784 has high quality earnings.

Growing Profit Margin: 532784's current net profit margins (7.4%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 532784's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: 532784's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532784 had negative earnings growth (-5.4%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: 532784's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Sobha's financial position?


Financial Position Analysis

Short Term Liabilities: 532784's short term assets (₹94.2B) exceed its short term liabilities (₹82.9B).

Long Term Liabilities: 532784's short term assets (₹94.2B) exceed its long term liabilities (₹2.9B).


Debt to Equity History and Analysis

Debt Level: 532784's debt to equity ratio (127.5%) is considered high.

Reducing Debt: 532784's debt to equity ratio has increased from 84% to 127.5% over the past 5 years.

Debt Coverage: 532784's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: 532784's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Sobha current dividend yield, its reliability and sustainability?

3.02%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 532784's dividend (3.02%) is higher than the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: 532784's dividend (3.02%) is in the top 25% of dividend payers in the Indian market (2.72%)


Stability and Growth of Payments

Stable Dividend: 532784's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532784's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), 532784's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532784's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Jagdish Sharma (62yo)

17.5yrs

Tenure

₹70,922,149

Compensation

Mr. Jagdish Chandra Sharma, B.Com,ACA, ACS has been the Managing Director of Sobha Limited since 2003 and served as its Chief Executive Officer. Mr. Sharma serves as Director at Sobha Limited since April 0 ...


CEO Compensation Analysis

Compensation vs Market: Jagdish's total compensation ($USD943.56K) is above average for companies of similar size in the Indian market ($USD318.25K).

Compensation vs Earnings: Jagdish's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ravi P. N. Menon
Chairman of the Board8.17yrs₹114.03m3.15% 706.2m
Jagdish Sharma
Vice Chairman & MD17.5yrs₹70.92m0.11% 25.3m
Subhash Bhatt
Chief Financial Officer5.5yrs₹11.29m0.00014% 31.3k
Vighneshwar Bhat
Compliance Officer & Company Secretary3.83yrs₹3.88mno data
Gaurav Bhatia
Senior VP of Sales & Marketing2.92yrsno datano data
Ajith Lal PG
Executive Vice Presidentno datano datano data
P. Varghese
Chief Executive Officer of Sobha Glazing & Metal Work Divisionno datano datano data
P. N. Menon
Founder & Chairman Emeritus8.08yrsno data18.34% 4.1b
Tejus Singh
Head of Investor Relationsno datano datano data
N. B. Kumar
Head of Legal & Land Affairs1.5yrsno datano data
Abhinav Kanchan
Head of Corporate Communications2.92yrsno datano data
Satish Kamath
Head of Human Resources Department1.5yrsno datano data

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 532784's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ravi P. N. Menon
Chairman of the Board8.17yrs₹114.03m3.15% 706.2m
Jagdish Sharma
Vice Chairman & MD17.5yrs₹70.92m0.11% 25.3m
P. N. Menon
Founder & Chairman Emeritus8.08yrsno data18.34% 4.1b
Jagadish Nangineni
Deputy MD & Additional Director1yrno datano data
Seetharam Thettali Pillai
Whole Time Director1.25yrsno datano data
Anup Sanmukh
Non-Executive Independent Director14.08yrs₹1.86m0.0045% 1.0m
Ramachandra Subba Rao
Non-Executive Independent Director14.08yrs₹1.87m0.016% 3.5m
Sumeet Puri
Independent Director1yrno datano data
Srivathsala Nandagopal
Additional Non Executive Independent Director0.50yrno datano data

8.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 532784's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sobha Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sobha Limited
  • Ticker: 532784
  • Exchange: BSE
  • Founded: 1995
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: ₹22.384b
  • Shares outstanding: 94.85m
  • Website: https://www.sobha.com

Number of Employees


Location

  • Sobha Limited
  • SOBHA
  • Sarjapur-Marathahalli Outer Ring Road
  • Bengaluru
  • Karnataka
  • 560103
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532784BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2006
SOBHANSEI (National Stock Exchange of India)YesEquity SharesININRDec 2006

Biography

Sobha Limited engages in the construction, development, sale, management, and operation of residential and commercial projects primarily in India. The company operates through two segments, Real Estate, and Contractual and Manufacturing. Its residential projects include luxury and super luxury apartments, presidential apartments, villas, row houses, plotted developments, and aspirational homes; and contractual projects for corporates comprise corporate offices, convention centers, software development blocks, multiplex theatres, hostel facilities, hotels, guest houses, food courts, restaurants, research centers, club houses, and factory buildings. The company also manufactures doors and door frames; fitted and loose furniture for hotels and serviced apartments; paneling, partitions, discussion tables, office workstations, reception desks, lift claddings, etc.; and modular kitchens, wardrobes, sofas, dining tables, exclusive chairs, etc. In addition, it undertakes contracts for corporate interiors for offices and hospitals; manufactures wood and wood-based products; manufactures and markets aluminum doors, windows, structural glazing, aluminum composite panels and SS cladding, and pre-engineered buildings; and undertakes other architectural metal works. Further, the company manufactures concrete products, such as concrete blocks, pavers, kerbs, water drainage channels, paving slabs, and landscape products; and mattresses under the Restoplus brand. The company was formerly known as Sobha Developers Limited and changed its name to Sobha Limited in August 2014. Sobha Limited was founded in 1995 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 12:39
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.