If you are a long-term investor, you must be patient in the stock market. Warren Buffett properly observed, “The stock market is a vehicle for transferring money from the impatient to the patient.”
Sobha Limited’s long-term investors have enjoyed a multi-bagger return on their investment. In the last year, the share price has climbed from Rs 318.8 to Rs 917, a return of roughly 188 percent.
On the Bombay Stock Exchange on Tuesday, the stock climbed 2% to an intraday high of Rs 917. (BSE). With a market value of about Rs 8,500 crore, the shares are higher above the 5 day, 20 day, 50 day, 100 day, and 200 day moving averages.
According to Manoj Dalmia, Founder and Director of Proficient Equities Limited, the firm is reasonably valued, with a P/B of 3.52, and mutual funds boosted their holdings from 11.27 to 12.04 percent in the quarter ending September 2021.
According to him, investors should buy the stock at approximately Rs 800 with a target price of Rs 959.20 and a stop loss of Rs 750.
In a study, ICICI Securities stated, “While Q1FY22 saw a reduced performance due to the second Covid wave across India.” “The better Q2FY22 performance reflects robust demand in South India, which has resulted in increased hiring in the IT/ITeS sector, as well as salary increases and low mortgage rates of 6.5-7.0 percent.”
This trend is expected to continue through H2FY22 and beyond, with sales volumes of 4.8/5.3/5.4 million square feet forecasted for FY22/23/24E.
The brokerage house believes the company’s Q2FY22 sales performance is outstanding, and expects sales momentum to continue into H2FY22E as well, thanks to fresh launches, given the second Covid wave’s impact across India.
According to HDFC Securities, the stock can be purchased for up to Rs 970 in three months at current levels.
The technical trend has improved since December 9, 2021, when it was Mildly Bullish, according to MarketsMojo. Multiple indicators such as the MACD, Bollinger Band, KST, and OBV are bullish, and the stock is technically in a bullish range. Institutional investors also control 30.77 percent of the company.
The Bengaluru-based real estate behemoth announced a three-fold increase in consolidated net profit for the quarter ended September.
In the quarter ending September 2021, Sobha Limited made a consolidated net profit of Rs 48.3 crore, up from Rs 16.2 crore the previous year.
Total income grew to Rs 832.3 crore in the second quarter of this fiscal year, up from Rs 545.9 crore the previous quarter.