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Sobha

BSE:532784
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532784
BSE
₹53B
Market Cap
  1. Home
  2. IN
  3. Real Estate
Company description

Sobha Limited engages in the construction, development, sale, management, and operation of residential and commercial projects primarily in India. The last earnings update was 33 days ago. More info.


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532784 Share Price and Events
7 Day Returns
-4.5%
BSE:532784
-4.5%
IN Real Estate
-3.4%
IN Market
1 Year Returns
12%
BSE:532784
-7.5%
IN Real Estate
-1.7%
IN Market
532784 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sobha (532784) -4.5% 14.6% 21% 12% 73.5% 3.3%
IN Real Estate -4.5% 4.8% -2.4% -7.5% 36% 7%
IN Market -3.4% 2.3% -1% -1.7% 30.1% 37.7%
1 Year Return vs Industry and Market
  • 532784 outperformed the Real Estate industry which returned -7.5% over the past year.
  • 532784 outperformed the Market in India which returned -1.7% over the past year.
Price Volatility
532784
Industry
5yr Volatility vs Market

532784 Value

 Is Sobha undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sobha to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sobha.

BSE:532784 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532784
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.026 (1 + (1- 35%) (46.46%))
1.225
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.225 * 8.6%)
18.08%

Discounted Cash Flow Calculation for BSE:532784 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sobha is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:532784 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.08%)
2019 6,314.25 Analyst x4 5,347.26
2020 4,867.80 Analyst x6 3,491.02
2021 5,060.52 Analyst x8 3,073.44
2022 4,444.87 Analyst x2 2,286.12
2023 4,142.24 Est @ -6.81% 1,804.20
2024 4,038.64 Est @ -2.5% 1,489.68
2025 4,059.41 Est @ 0.51% 1,268.04
2026 4,165.97 Est @ 2.62% 1,102.03
2027 4,336.88 Est @ 4.1% 971.55
2028 4,559.65 Est @ 5.14% 865.03
Present value of next 10 years cash flows ₹21,698.38
BSE:532784 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹4,559.65 × (1 + 7.55%) ÷ (18.08% – 7.55%)
₹46,554.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹46,554.26 ÷ (1 + 18.08%)10
₹8,831.99
BSE:532784 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹21,698.38 + ₹8,831.99
₹30,530.37
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹30,530.37 / 94.85
₹321.89
BSE:532784 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹321.89
Current discount Discount to share price of ₹554.35
= -1 x (₹554.35 - ₹321.89) / ₹321.89
-72.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sobha is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sobha's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sobha's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532784 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹31.33
BSE:532784 Share Price ** BSE (2019-06-18) in INR ₹554.35
India Real Estate Industry PE Ratio Median Figure of 100 Publicly-Listed Real Estate Companies 18.03x
India Market PE Ratio Median Figure of 2,825 Publicly-Listed Companies 15.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sobha.

BSE:532784 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532784 Share Price ÷ EPS (both in INR)

= 554.35 ÷ 31.33

17.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sobha is good value based on earnings compared to the IN Real Estate industry average.
  • Sobha is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Sobha's expected growth come at a high price?
Raw Data
BSE:532784 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
7.7%per year
India Real Estate Industry PEG Ratio Median Figure of 11 Publicly-Listed Real Estate Companies 1.31x
India Market PEG Ratio Median Figure of 522 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

BSE:532784 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.69x ÷ 7.7%

2.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sobha is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sobha's assets?
Raw Data
BSE:532784 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹235.11
BSE:532784 Share Price * BSE (2019-06-18) in INR ₹554.35
India Real Estate Industry PB Ratio Median Figure of 165 Publicly-Listed Real Estate Companies 0.73x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 0.99x
BSE:532784 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532784 Share Price ÷ Book Value per Share (both in INR)

= 554.35 ÷ 235.11

2.36x

* Primary Listing of Sobha.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sobha is overvalued based on assets compared to the IN Real Estate industry average.
X
Value checks
We assess Sobha's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Sobha has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

532784 Future Performance

 How is Sobha expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sobha expected to grow at an attractive rate?
  • Sobha's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Sobha's earnings growth is positive but not above the India market average.
  • Sobha's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:532784 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:532784 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 7.7%
BSE:532784 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 4.1%
India Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
India Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 2%
India Market Earnings Growth Rate Market Cap Weighted Average 16.6%
India Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532784 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532784 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 39,925 5,437 3,739 6
2021-03-31 36,280 6,073 3,434 14
2020-03-31 35,621 4,589 3,064 13
BSE:532784 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 34,421 4,997 2,971
2018-12-31 28,139 2,592 2,493
2018-09-30 27,179 2,900 2,329
2018-06-30 27,058 3,329 2,218
2018-03-31 27,830 3,535 2,169
2017-12-31 25,917 3,514 1,985
2017-09-30 24,398 3,346 1,845
2017-06-30 23,339 1,726
2017-03-31 22,291 3,538 1,608
2016-12-31 21,212 3,732 1,565
2016-09-30 20,190 1,536
2016-06-30 19,776 1,540

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sobha's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • Sobha's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:532784 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Sobha Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532784 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 38.28 44.10 30.70 5.00
2021-03-31 34.90 44.36 25.22 13.00
2020-03-31 32.38 37.66 28.80 14.00
BSE:532784 Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 31.33
2018-12-31 26.28
2018-09-30 24.54
2018-06-30 23.29
2018-03-31 22.68
2017-12-31 20.68
2017-09-30 19.15
2017-06-30 17.89
2017-03-31 16.59
2016-12-31 16.07
2016-09-30 15.71
2016-06-30 15.70

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sobha is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sobha's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sobha has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

532784 Past Performance

  How has Sobha performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sobha's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sobha's year on year earnings growth rate has been positive over the past 5 years.
  • Sobha's 1-year earnings growth exceeds its 5-year average (37% vs 0.2%)
  • Sobha's earnings growth has exceeded the IN Real Estate industry average in the past year (37% vs -2%).
Earnings and Revenue History
Sobha's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sobha Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532784 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 34,421.00 2,971.00 2,359.00
2018-12-31 28,139.32 2,492.70 3,315.66
2018-09-30 27,179.32 2,328.70 3,200.66
2018-06-30 27,058.32 2,217.70 3,097.66
2018-03-31 27,830.32 2,168.70 3,071.66
2017-12-31 25,916.57 1,984.53 2,792.06
2017-09-30 24,397.57 1,844.53 2,751.06
2017-06-30 23,338.57 1,725.53 2,708.06
2017-03-31 22,290.57 1,607.53 2,680.06
2016-12-31 21,211.50 1,564.78 2,532.56
2016-09-30 20,189.50 1,535.78 2,528.56
2016-06-30 19,775.50 1,539.78 2,523.56
2016-03-31 19,431.98 1,380.65 2,513.41
2015-12-31 18,186.61 1,786.12 3,529.21
2015-09-30 21,040.61 2,066.12 3,614.21
2015-06-30 23,243.61 2,260.12 3,679.21
2015-03-31 24,405.61 2,380.13 2,755.27
2014-12-31 25,610.34 2,468.43 3,675.30
2014-09-30 24,209.34 2,448.43 3,656.30
2014-06-30 22,895.34 2,419.43 3,550.30
2014-03-31 21,734.34 2,350.43 3,579.30
2013-12-31 21,336.42 2,342.79 3,063.01
2013-09-30 20,195.42 2,287.79 2,957.01
2013-06-30 18,935.42 2,222.79 2,953.01
2013-03-31 18,645.42 2,171.79 2,876.82
2012-12-31 17,993.02 2,443.54 2,500.38
2012-09-30 16,828.02 2,411.54 2,406.38
2012-06-30 15,626.02 2,249.54 2,318.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sobha has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sobha used its assets more efficiently than the IN Real Estate industry average last year based on Return on Assets.
  • Sobha has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sobha's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sobha has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

532784 Health

 How is Sobha's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sobha's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sobha is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sobha's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sobha's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sobha Company Filings, last reported 2 months ago.

BSE:532784 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 22,291.00 24,427.00 7,470.00
2018-12-31 21,160.00 24,356.00 7,165.00
2018-09-30 20,464.00 23,512.00 6,292.00
2018-06-30 20,665.00 23,227.00 5,625.00
2018-03-31 27,699.31 24,628.85 1,059.64
2017-12-31 27,045.00 24,150.00 9,716.00
2017-09-30 27,128.00 24,368.00 9,352.00
2017-06-30 26,444.78 23,200.67 1,468.25
2017-03-31 26,444.78 23,200.67 1,240.02
2016-12-31 25,973.00 21,551.00 15,226.00
2016-09-30 25,576.00 21,548.00 14,912.00
2016-06-30 25,770.40 22,407.88 1,333.41
2016-03-31 25,648.13 22,118.06 1,185.43
2015-12-31 25,605.00 21,464.00 1,127.00
2015-09-30 25,292.00 22,569.00 1,548.00
2015-06-30 24,465.06 20,589.23 1,631.37
2015-03-31 24,465.06 20,589.23 1,631.37
2014-12-31 24,157.00 18,311.00 1,172.00
2014-09-30 24,157.00 18,311.00 1,172.00
2014-06-30 23,001.81 14,050.43 1,054.72
2014-03-31 23,001.81 14,050.43 1,054.72
2013-12-31 22,536.00 13,969.00 856.00
2013-09-30 22,536.00 13,969.00 856.00
2013-06-30 21,467.99 13,802.91 671.67
2013-03-31 21,467.99 13,802.91 671.67
2012-12-31 21,099.00 14,512.00 1,193.00
2012-09-30 21,099.00 14,512.00 1,193.00
2012-06-30 20,352.83 12,439.63 587.76
  • Sobha's level of debt (109.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (61.1% vs 109.6% today).
  • Debt is well covered by operating cash flow (20.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Sobha's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sobha has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

532784 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.26%
Current annual income from Sobha dividends. Estimated to be 1.41% next year.
If you bought ₹2,000 of Sobha shares you are expected to receive ₹25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sobha's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.54%).
  • Sobha's dividend is below the markets top 25% of dividend payers in India (2.07%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532784 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
India Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1450 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532784 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 9.29 4.00
2021-03-31 7.51 13.00
2020-03-31 7.60 12.00
BSE:532784 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-17 7.000 1.307
2018-07-11 7.000 1.532
2018-05-21 7.000 1.425
2017-07-12 2.500 0.512
2017-05-16 2.500 0.647
2016-07-08 2.000 0.678
2016-05-19 2.000 0.647
2015-06-18 7.000 2.359
2015-05-12 7.000 1.755
2014-05-22 7.000 1.553
2013-06-10 7.000 2.231
2013-05-10 7.000 1.746
2012-08-07 5.000 1.338
2012-05-07 5.000 1.540
2011-07-01 3.000 1.205
2010-05-17 2.500 0.833
2010-04-27 2.500 0.815

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sobha has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Sobha only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Sobha's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
X
Income/ dividend checks
We assess Sobha's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sobha afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sobha has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

532784 Management

 What is the CEO of Sobha's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jagdish Sharma
COMPENSATION ₹53,760,000
AGE 60
TENURE AS CEO 16.4 years
CEO Bio

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 was Associated with Sobha Developers since June 2001 and beared overall responsibility for finance, land acquisition and legal functions. Mr. Sharma served as the General Manager of Auto Distributors Limited, General Manager of Finance of Bhoruka Steels Limited and General Manager of Commerce & Finance of Grasim Industries Limited. Mr. Sharma has over 25 years of experience in diversified industries such as automobiles, textiles, steel and real estate in the areas of finance and management. Mr. Sharma has been the Vice Chairman at Sobha Limited since May 6, 2012 and has been its Whole Time Director since April 01, 2003. Mr. Sharma served as an Independent Director of LT Foods Limited since October 22, 2008. He was a qualified Chartered Accountant and Company Secretary. Mr. Sharma graduated with a Bachelor of Commerce (Hons.) degree from St Xaviers College, Calcutta.

CEO Compensation
  • Jagdish's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jagdish's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Sobha management team in years:

1.8
Average Tenure
53
Average Age
  • The average tenure for the Sobha management team is less than 2 years, this suggests a new team.
Management Team

Jagdish Sharma

TITLE
Vice Chairman & MD
COMPENSATION
₹54M
AGE
60
TENURE
16.4 yrs

Subhash Bhatt

TITLE
Head of Finance
COMPENSATION
₹11M
AGE
47
TENURE
4.4 yrs

Vighneshwar Bhat

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹4M
TENURE
2.8 yrs

Jagadish Nangineni

TITLE
Regional Head of New Delhi
AGE
39

Ajith Lal

TITLE
Executive Vice President
AGE
51

P. Varghese

TITLE
Chief Executive Officer of Sobha Glazing & Metal Work Division
AGE
55

N. B. Kumar

TITLE
Head of Legal & Land Affairs
AGE
55
TENURE
0.4 yrs

Abhinav Kanchan

TITLE
Senior VP and Head of Corporate Communications & National Marketing
TENURE
1.8 yrs

Gaurav Bhatia

TITLE
Senior VP of Sales & Marketing
TENURE
1.8 yrs

Satish Kamath

TITLE
Head of Human Resources Department
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Sobha board of directors in years:

7.1
Average Tenure
61
Average Age
  • The tenure for the Sobha board of directors is about average.
Board of Directors

Ravi P. N. Menon

TITLE
Chairman of the Board
COMPENSATION
₹94M
AGE
37
TENURE
7.1 yrs

Jagdish Sharma

TITLE
Vice Chairman & MD
COMPENSATION
₹54M
AGE
60
TENURE
7.1 yrs

P. N. Menon

TITLE
Founder & Chairman Emeritus
AGE
70
TENURE
7 yrs

Anup Shah

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
62
TENURE
13 yrs

Ramachandra Subba Rao

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
74
TENURE
13 yrs

Punita Kumar-Sinha

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
56
TENURE
4.7 yrs

T. Seetharam

TITLE
Whole Time Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • Sobha insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
05. Jun 19 Sell Jagdish Sharma Individual 04. Jun 19 04. Jun 19 -13,475 ₹558.82 ₹-7,530,162
29. May 19 Sell Jagdish Sharma Individual 27. May 19 27. May 19 -10,000 ₹549.45 ₹-5,494,499
05. Apr 19 Sell Sobha Menon Individual 03. Apr 19 03. Apr 19 -2,900,000 ₹496.97 ₹-1,441,199,989
05. Apr 19 Buy Ravi P. N. Menon Individual 03. Apr 19 03. Apr 19 2,900,000 ₹496.97 ₹1,441,219,854
11. Dec 18 Buy Ravi P. N. Menon Individual 10. Dec 18 10. Dec 18 2,538 ₹432.97 ₹1,098,878
29. Oct 18 Buy Ravi P. N. Menon Individual 26. Oct 18 26. Oct 18 4,533 ₹422.02 ₹1,913,017
22. Oct 18 Buy Ravi P. N. Menon Individual 19. Oct 18 19. Oct 18 16,618 ₹424.37 ₹7,052,180
11. Sep 18 Buy Jagdish Sharma Individual 10. Sep 18 10. Sep 18 5,000 ₹425.00 ₹2,125,000
X
Management checks
We assess Sobha's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sobha has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

532784 News

Simply Wall St News

532784 Company Info

Description

Sobha Limited engages in the construction, development, sale, management, and operation of residential and commercial projects primarily in India. Its residential projects include luxury and super luxury 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; panelings, 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, it 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.

Details
Name: Sobha Limited
532784
Exchange: BSE
Founded: 1995
₹52,577,798,610
94,845,853
Website: http://www.sobha.com
Address: Sobha Limited
SOBHA,
Sarjapur-Marathahalli Outer Ring Road,
Bengaluru,
Karnataka, 560103,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532784 Equity Shares Mumbai Stock Exchange IN INR 20. Dec 2006
NSEI SOBHA Equity Shares National Stock Exchange of India IN INR 20. Dec 2006
Number of employees
Current staff
Staff numbers
3,555
Sobha employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 12:46
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/05/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.