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Last Updated on: 23 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sobha Ltd

About the Company - Sobha Ltd

Sobha Ltd. is a Public Limited Listed company incorporated on 07/08/1995 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L45201KA1995PLC018475 and registration number is 018475. Currently Company is involved in the business activities of Construction of buildings. Company’s Total Operating Revenue is Rs. 2754.03 Cr. and Equity Capital is Rs. 94.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Realty�SOBHA�, Sarjapur-Marathahalli Outer Ring Road (ORR), Bengaluru Karnataka 560103investors@sobha.com
http://www.sobha.com
Management
NamePosition Held
Mr. Ravi PNC MenonChairman
Mr. Jagadish NangineniManaging Director
Mr. Raman MangalorkarIndependent Director
Mr. R V S RaoIndependent Director
Mr. Anup S ShahIndependent Director
Ms. K N SrivathsalaIndependent Director

Sobha Ltd. Share Price Update

Share PriceValue
Today₹1,361.00
Previous Day₹1,347.65

Basic Stock Data of Sobha Ltd

Market Cap 13,580 Cr.
Current Price 1,432
High / Low1,578/412
Stock P/E150
Book Value 263
Dividend Yield0.20 %
ROCE8.32 %
ROE4.24 %
Face Value 10.0

Data Source: screener.in

Competitors of Sobha Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ramky Infrastructure Ltd 4,534 Cr. 6551,009/26016.9 2340.00 %15.8 %8.79 % 10.0
ITD Cementation India Ltd 6,152 Cr. 358365/93.227.7 77.20.21 %18.8 %10.4 % 1.00
NCC Ltd 14,387 Cr. 229234/87.421.4 1000.97 %18.7 %9.99 % 2.00
Peninsula Land Ltd 1,789 Cr. 60.971.6/11.019.3 3.040.00 %26.1 %% 2.00
Man Infraconstruction Ltd 8,091 Cr. 218249/66.225.9 32.80.74 %32.0 %26.4 % 2.00
Industry Average6.6 Cr304.1822.2489.410.38%22.28%11.12%3.4

Sobha Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales5226845535127806227105656708681,210908741
Expenses3685064043116014726334925757791,094843666
Operating Profit154179150201179150787395891166575
OPM %29%26%27%39%23%24%11%13%14%10%10%7%10%
Other Income2412361302833122130303132
Interest135138150184797968616366616164
Depreciation20212018171818151818181819
Profit before tax2332151384812583435671725
Tax %29%33%-23%14%25%25%43%46%44%9%27%30%39%
Net Profit1622181163611451932491215
EPS in Rs1.712.281.891.146.656.431.500.482.023.355.121.271.58

Sobha Ltd Quarterly Chart

Sobha Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4081,8652,1732,4411,9432,2292,7833,4423,7542,1102,5613,3103,727
Expenses9411,3161,5711,8231,4991,8092,2632,7692,6391,4352,0282,9413,382
Operating Profit4675496036174444205206731,115675533370345
OPM %33%29%28%25%23%19%19%20%30%32%21%11%9%
Other Income6510153652507372818492124
Interest117170173188164150198236682601308249252
Depreciation39596972606454627279726873
Profit before tax31832437037225725831744843375237145144
Tax %34%33%37%34%46%38%32%34%35%17%27%28%
Net Profit21021723424413816121729728262173104107
EPS in Rs21.0022.1523.9724.2714.0816.6922.8731.3129.706.5718.2610.9911.32
Dividend Payout %24%32%29%29%14%15%31%22%24%53%16%27%

Sobha Ltd Profit & Loss Yearly Chart

Sobha Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:4%
3 Years:-4%
TTM:26%
Compounded Profit Growth
10 Years:-7%
5 Years:-14%
3 Years:-28%
TTM:30%
Stock Price CAGR
10 Years:18%
5 Years:25%
3 Years:47%
1 Year:155%
Return on Equity
10 Years:8%
5 Years:7%
3 Years:4%
Last Year:4%

Sobha Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital98989898989695959595959595
Reserves1,9022,0392,1932,3342,4672,5482,6752,1342,3362,3332,3282,4002,397
Borrowings1,2411,3791,4042,0592,1802,2222,3312,6043,1313,0522,5292,0272,023
Other Liabilities9971,3441,8141,6663,3174,0273,9245,9075,4485,7296,5788,0548,571
Total Liabilities4,2374,8605,5096,1578,0628,8939,02510,74011,01011,20811,53012,57613,085
Fixed Assets284330335315373595610678919903852899913
CWIP1041524510000022
Investments00002290112113114114115115115
Other Assets3,9524,5295,1345,7897,4158,2988,3029,9499,97610,19110,56411,56012,056
Total Assets4,2374,8605,5096,1578,0628,8939,02510,74011,01011,20811,53012,57613,085

Sobha Ltd Reserves and Borrowings Chart

Sobha Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 486254395-2163883543532062946138261,150
Cash from Investing Activity -211-129-126-60-2452-129-61-307-3338-237
Cash from Financing Activity -251-109-246337-133-345-243-86-84-483-889-773
Net Cash Flow241623611110-1858-9796-25140

Sobha Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days293241264737433535345017
Inventory Days5,289
Days Payable788
Cash Conversion Cycle2932412647374,5443535345017
Working Capital Days623536480545974629527326380613459220
ROCE %14%15%15%14%9%8%10%14%21%12%10%8%

Sobha Ltd Financial Efficiency Indicators Chart

Sobha Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters51.99%51.99%51.99%51.99%51.99%51.99%51.99%51.99%52.26%52.28%52.28%52.28%
FIIs18.08%17.89%17.05%18.06%16.16%15.02%15.55%15.06%13.76%12.74%11.22%11.13%
DIIs12.47%13.09%13.72%12.66%13.39%13.00%13.71%13.75%13.62%12.21%14.95%17.23%
Public17.47%17.03%17.24%17.29%18.47%19.99%18.76%19.20%20.35%22.76%21.54%19.36%
No. of Shareholders66,96664,58570,22477,79587,09297,25091,58890,71892,4411,04,9041,02,77387,981

Sobha Ltd Shareholding Pattern Chart

No. of Sobha Ltd Shareholders

Sobha Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Franklin India Focused Equity Fund29573702.81291.51
Franklin India Smaller Companies Fund20312431.76200.22
HSBC Small Cap Fund - Regular Plan14249331.06140.46
HSBC Value Fund10234000.94100.88
Canara Robeco Small Cap Fund7081760.7669.8
Aditya Birla Sun Life Small Cap Fund6800481.2867.03
Aditya Birla Sun Life Pure Value Fund5635661.0255.55
Franklin Build India Fund5100002.6850.27
SBI Infrastructure Fund5000002.7449.29
Tata Mid Cap Growth Fund - Regular Plan4152601.3540.93

Sobha Ltd ROCE Trend

Sobha Ltd EPS Trend

Sobha Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.9912.326.5729.6931.33
Diluted EPS (Rs.)10.9912.326.5729.6931.33
Cash EPS (Rs.)18.1419.9314.9337.3237.88
Book Value[Excl.RevalReserv]/Share (Rs.)263.02264.69255.97256.33235.02
Book Value[Incl.RevalReserv]/Share (Rs.)263.02264.69255.97256.33235.02
Revenue From Operations / Share (Rs.)349.00291.66226.87400.32366.99
PBDIT / Share (Rs.)48.69103.3279.68125.1578.73
PBIT / Share (Rs.)41.5495.7271.31117.5372.16
PBT / Share (Rs.)15.2916.687.9345.6747.26
Net Profit / Share (Rs.)10.9912.326.5729.7031.31
NP After MI And SOA / Share (Rs.)10.9912.326.5729.7031.31
PBDIT Margin (%)13.9535.4235.1231.2621.45
PBIT Margin (%)11.9032.8131.4329.3619.66
PBT Margin (%)4.375.713.4911.4012.87
Net Profit Margin (%)3.144.222.897.418.53
NP After MI And SOA Margin (%)3.144.222.897.418.53
Return on Networth / Equity (%)4.174.652.5611.5813.32
Return on Capital Employeed (%)12.4527.7223.8640.9730.37
Return On Assets (%)0.821.020.552.552.76
Long Term Debt / Equity (X)0.240.280.140.090.00
Total Debt / Equity (X)0.800.971.231.281.10
Asset Turnover Ratio (%)0.280.240.190.350.34
Current Ratio (X)1.111.211.131.141.10
Quick Ratio (X)0.180.290.280.320.32
Inventory Turnover Ratio (X)0.000.000.020.040.04
Dividend Payout Ratio (NP) (%)27.3028.40106.6028.4122.35
Dividend Payout Ratio (CP) (%)16.5317.5646.8722.6118.47
Earning Retention Ratio (%)72.7071.60-6.6071.5977.65
Cash Earning Retention Ratio (%)83.4782.4453.1377.3981.53
Interest Coverage Ratio (X)1.851.311.261.743.16
Interest Coverage Ratio (Post Tax) (X)1.421.161.101.412.26
Enterprise Value (Cr.)5636.219004.446920.264296.097130.66
EV / Net Operating Revenue (X)1.703.253.221.132.05
EV / EBITDA (X)12.209.199.163.629.55
MarketCap / Net Operating Revenue (X)1.232.431.920.331.40
Retention Ratios (%)72.6971.59-6.6071.5877.64
Price / BV (X)1.642.681.700.522.18
Price / Net Operating Revenue (X)1.232.431.920.331.40
EarningsYield0.020.010.010.210.06

Sobha Ltd Profitability Ratios (%)

Sobha Ltd Liquidity Ratios

Sobha Ltd Liquidity Ratios (%)

Sobha Ltd Interest Coverage Ratios (X)

Sobha Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sobha Ltd

Fair Value: ₹1676.03

The stock is undervalued by 17.04% compared to the current price ₹1432

*Investments are subject to market risks

Strength and Weakness of Sobha Ltd

StrengthWeakness
  1. The company has higher reserves (2,314.31 cr) compared to borrowings (2,167.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.08 cr) and profit (284.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 79.65 and average Dividend Yield of 25.03%.
  2. The stock has a low average ROCE of 12.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 526.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 32.25, which may not be favorable.

Should I Buy Sobha Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sobha Ltd:
    1. Net Profit Margin: 3.14%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.45% (Industry Average ROCE: 7.81%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.42
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.18
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 150 (Industry average Stock P/E: 12.28)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.80
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sobha Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE