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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sobha Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:13 pm

Market Cap 20,687 Cr.
Current Price 2,181
High / Low2,220/521
Stock P/E421
Book Value 265
Dividend Yield0.14 %
ROCE7.12 %
ROE1.96 %
Face Value 10.0
PEG Ratio-14.28

Competitors of Sobha Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ajmera Realty & Infra India Ltd 2,551 Cr. 718887/32624.8 2440.42 %11.7 %12.6 % 10.0
Ahluwalia Contracts (India) Ltd 8,020 Cr. 1,1991,389/59734.6 2390.03 %23.9 %16.4 % 2.00
Peninsula Land Ltd 2,333 Cr. 75.878.2/23.025.6 7.970.00 %26.6 %70.5 % 2.00
RPP Infra Projects Ltd 556 Cr. 146161/51.49.72 1120.00 %21.2 %14.5 % 10.0
Indiabulls Real Estate Ltd 8,657 Cr. 137146/58.0 50.80.00 %11.0 %13.1 % 2.00
Industry Average7,037.14 Cr252.1326.29136.790.09%13.39%51.21%6.50

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales553.40512.30779.90622.30710.30564.60670.05868.161,209.93907.91741.24684.93762.86
Expenses403.70310.90600.90472.00632.70491.78575.25779.401,094.16842.54665.79610.81700.79
Operating Profit149.70201.40179.00150.3077.6072.8294.8088.76115.7765.3775.4574.1262.07
OPM %27.05%39.31%22.95%24.15%10.92%12.90%14.15%10.22%9.57%7.20%10.18%10.82%8.14%
Other Income35.5012.700.5027.7033.4011.7120.5429.8230.2131.3332.4028.8228.39
Interest150.20184.0078.9078.8068.3061.4263.1065.9661.1761.1463.8761.4559.05
Depreciation20.4017.5017.0018.0017.9014.6617.9017.4917.8818.2819.3120.1320.51
Profit before tax14.6012.6083.6081.2024.808.4534.3435.1366.9317.2824.6721.3610.90
Tax %-22.60%14.29%24.52%24.88%42.74%46.15%44.26%9.45%27.43%30.32%39.40%29.40%35.60%
Net Profit17.9010.8063.1061.0014.204.5519.1531.8148.5812.0514.9515.087.03
EPS in Rs1.891.146.656.431.500.482.023.355.121.271.581.590.74

Last Updated: June 9, 2024, 9:49 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 1:17 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,8652,1732,4411,9432,2292,7833,4423,7542,1102,5613,3103,097
Expenses1,3161,5711,8231,4991,8092,2632,7692,6391,4352,0282,9412,820
Operating Profit5496036174444205206731,115675533370277
OPM %29%28%25%23%19%19%20%30%32%21%11%9%
Other Income510153652507372818492121
Interest170173188164150198236682601308249246
Depreciation596972606454627279726878
Profit before tax3243703722572583174484337523714574
Tax %33%37%34%46%38%32%34%35%17%27%28%34%
Net Profit2172342441381612172972826217310449
EPS in Rs22.1523.9724.2714.0816.6922.8731.3129.706.5718.2610.995.18
Dividend Payout %32%29%29%14%15%31%22%24%53%16%27%58%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)7.83%4.27%-43.44%16.67%34.78%36.87%-5.05%-78.01%179.03%-39.88%-52.88%
Change in YoY Net Profit Growth (%)0.00%-3.56%-47.72%60.11%18.12%2.08%-41.92%-72.96%257.05%-218.92%-13.00%

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:16%
5 Years:26%
3 Years:45%
1 Year:261%
Return on Equity
10 Years:8%
5 Years:7%
3 Years:4%
Last Year:4%

Last Updated: April 11, 2024, 8:24 am

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow548.00602.00615.00442.00418.00518.00671.00-2.00672.00531.00368.00276.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters51.99%51.99%51.99%51.99%51.99%51.99%51.99%52.26%52.28%52.28%52.28%52.28%
FIIs17.89%17.05%18.06%16.16%15.02%15.55%15.06%13.76%12.74%11.22%11.13%11.87%
DIIs13.09%13.72%12.66%13.39%13.00%13.71%13.75%13.62%12.21%14.95%17.23%17.55%
Public17.03%17.24%17.29%18.47%19.99%18.76%19.20%20.35%22.76%21.54%19.36%18.28%
No. of Shareholders64,58570,22477,79587,09297,25091,58890,71892,4411,04,9041,02,77387,9811,00,295

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Franklin India Focused Equity Fund2,957,3702.81291.511,424,9332024-06-17107.54%
Franklin India Smaller Companies Fund2,031,2431.76200.221,424,9332024-06-1742.55%
HSBC Small Cap Fund - Regular Plan1,424,9331.06140.461,424,9332024-06-170%
HSBC Value Fund1,023,4000.94100.881,424,9332024-06-17-28.18%
Canara Robeco Small Cap Fund708,1760.7669.81,424,9332024-06-17-50.3%
Aditya Birla Sun Life Small Cap Fund680,0481.2867.031,424,9332024-06-17-52.28%
Aditya Birla Sun Life Pure Value Fund563,5661.0255.551,424,9332024-06-17-60.45%
Franklin Build India Fund510,0002.6850.271,424,9332024-06-17-64.21%
SBI Infrastructure Fund500,0002.7449.291,424,9332024-06-17-64.91%
Tata Mid Cap Growth Fund - Regular Plan415,2601.3540.931,424,9332024-06-17-70.86%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.1810.9912.326.5729.69
Diluted EPS (Rs.)5.1810.9912.326.5729.69
Cash EPS (Rs.)13.4318.1419.9314.9337.32
Book Value[Excl.RevalReserv]/Share (Rs.)265.07263.02264.69255.97256.33
Book Value[Incl.RevalReserv]/Share (Rs.)265.07263.02264.69255.97256.33
Revenue From Operations / Share (Rs.)326.52349.00291.66226.87400.32
PBDIT / Share (Rs.)41.9648.69103.3279.68125.15
PBIT / Share (Rs.)33.7141.5495.7271.31117.53
PBT / Share (Rs.)7.8315.2916.687.9345.67
Net Profit / Share (Rs.)5.1810.9912.326.5729.70
NP After MI And SOA / Share (Rs.)5.1810.9912.326.5729.70
PBDIT Margin (%)12.8513.9535.4235.1231.26
PBIT Margin (%)10.3211.9032.8131.4329.36
PBT Margin (%)2.394.375.713.4911.40
Net Profit Margin (%)1.583.144.222.897.41
NP After MI And SOA Margin (%)1.583.144.222.897.41
Return on Networth / Equity (%)1.954.174.652.5611.58
Return on Capital Employeed (%)9.7112.4527.7223.8640.97
Return On Assets (%)0.350.821.020.552.55
Long Term Debt / Equity (X)0.280.240.280.140.09
Total Debt / Equity (X)0.760.800.971.231.28
Asset Turnover Ratio (%)0.230.280.240.190.35
Current Ratio (X)1.081.111.211.131.14
Quick Ratio (X)0.170.180.290.280.32
Inventory Turnover Ratio (X)0.030.000.000.020.04
Dividend Payout Ratio (NP) (%)0.0027.3028.40106.6028.41
Dividend Payout Ratio (CP) (%)0.0016.5317.5646.8722.61
Earning Retention Ratio (%)0.0072.7071.60-6.6071.59
Cash Earning Retention Ratio (%)0.0083.4782.4453.1377.39
Interest Coverage Ratio (X)1.621.851.311.261.74
Interest Coverage Ratio (Post Tax) (X)1.201.421.161.101.41
Enterprise Value (Cr.)14938.355636.219004.446920.264296.09
EV / Net Operating Revenue (X)4.821.703.253.221.13
EV / EBITDA (X)37.5412.209.199.163.62
MarketCap / Net Operating Revenue (X)4.421.232.431.920.33
Retention Ratios (%)0.0072.6971.59-6.6071.58
Price / BV (X)5.451.642.681.700.52
Price / Net Operating Revenue (X)4.421.232.431.920.33
EarningsYield0.000.020.010.010.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2,189.74

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 0.40% compared to the current price 2181

Intrinsic Value: 1,544.21

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 29.20% compared to the current price ₹2181

Last 5 Year EPS CAGR: -29.48%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (2,350.50 cr) compared to borrowings (2,238.17 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.17 cr) and profit (275.83 cr) over the years.
  1. The stock has a low average ROCE of 12.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 526.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 32.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sobha Ltd:
    1. Net Profit Margin: 1.58%
      • 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: 9.71% (Industry Average ROCE: 11.94%)
      • 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. ROE%: 1.95% (Industry Average ROE: 9.7%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.20
      • 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.
    5. Quick Ratio: 0.17
      • 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.
    6. ✗ Stock P/E: 421 (Industry average Stock P/E: 20.44)
      • 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.
    7. Total Debt / Equity: 0.76
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Sobha Ltd?

The latest fair value of Sobha Ltd is ₹2189.74.

What is the Market Cap of Sobha Ltd?

The Market Cap of Sobha Ltd is 20,687 Cr..

What is the current Stock Price of Sobha Ltd as on 23 June 2024?

The current stock price of Sobha Ltd as on 23 June 2024 is ₹2,181.

What is the High / Low of Sobha Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sobha Ltd stocks is 2,220/521.

What is the Stock P/E of Sobha Ltd?

The Stock P/E of Sobha Ltd is 421.

What is the Book Value of Sobha Ltd?

The Book Value of Sobha Ltd is 265.

What is the Dividend Yield of Sobha Ltd?

The Dividend Yield of Sobha Ltd is 0.14 %.

What is the ROCE of Sobha Ltd?

The ROCE of Sobha Ltd is 7.12 %.

What is the ROE of Sobha Ltd?

The ROE of Sobha Ltd is 1.96 %.

What is the Face Value of Sobha Ltd?

The Face Value of Sobha Ltd is 10.0.

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