Sobha - On A Strong Footing: ICICI Securities
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ICICI Securities Report
As per Sobha Ltd.’s Q3 FY22 operations update, the company has achieved gross sales bookings of 1.32 million square feet worth Rs 10.5 billion (our estimate of Rs 9.9 billion) which were up 17% YoY in volume terms and 18% YoY in value terms driven by Bengaluru, Gurugram and Pune markets.
While Q1 FY22 saw a muted performance owing to the second Covid-19 wave across India, the strong performance in Q2 FY22 and Q3 FY22 (best ever quarters for sales bookings) reflects the strong demand in South India driven by hiring in IT/IT enabled service sector accompanied by salary hikes and low mortgage rates of 6.5- 7.0%.
We expect this momentum to continue for Sobha into Q4 FY22 and beyond, and model for 4.8/5.3/5.4 msf of sales volumes in FY22/23/24E.
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