Re: {LONGTERMINVESTORS} Shobha Developers - Thread
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Rajesh Desai
Oct 7, 2013, 12:44:33 AM10/7/13
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Ambit - Sobha Developers (BUY): On track to achieve full-year target
Sobha Developers released its 2QFY14 operational performance data on Friday. The company demonstrated robust sales value growth of 20% YoY, underpinned by average price realisation growth of 13% YoY and growth in area sold of 6% YoY. Consequently, the company is on track to achieve its target of Rs26bn worth of new sales for FY14 (up 17% YoY for the year). We continue to view Sobha as the best play in the real estate sector with strong cash generation, a strong brand built around project execution, and prospects of prudent long-term capital utilisation. Our project-based DCF model generates a fair value of Rs482/share (51% upside). We reiterate our high-conviction BUY stance. (Rakshit Ranjan, CFA, +91 22 3043 3201)
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CA. Rajesh Desai
Sobha Developers released its 2QFY14 operational performance data on Friday. The company demonstrated robust sales value growth of 20% YoY, underpinned by average price realisation growth of 13% YoY and growth in area sold of 6% YoY. Consequently, the company is on track to achieve its target of Rs26bn worth of new sales for FY14 (up 17% YoY for the year). We continue to view Sobha as the best play in the real estate sector with strong cash generation, a strong brand built around project execution, and prospects of prudent long-term capital utilisation. Our project-based DCF model generates a fair value of Rs482/share (51% upside). We reiterate our high-conviction BUY stance. (Rakshit Ranjan, CFA, +91 22 3043 3201)
CA. Rajesh Desai
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