Sobha crumbles down

Realty major, Sobha Ltd has been among the top five losers on the markets since the opening bell; the stock opened over 1.5% lower at Rs.774 and slipped down 6% to hit an intraday low at Rs.740.75. Its 52-week low is at Rs.12.40 and high at Rs.801.

The market is obviously very disappointed with its performance for Q2FY24. A higher purchase cost for land, which spiked up the total expenses by 14%, led to the company posting a 22% (YoY) drop in consolidated net profit at Rs.15 crore.

This was despite an over 20% rise in realty sales and 11% rise in revenue from operations at Rs.741 crore.

Its revenue from commercial and home interior projects fell 11%. EBITDA margin fell from 14.2% to 10.2%.

Its average price realization stood at Rs. 10,223/sqft, which is a 17% (YoY) increase.