Sobha Q3 Update | Bengaluru-based builder reports highest ever quarterly sales

Majority of Sobha's sales came from Bengaluru, its core market, which also had its highest ever quarterly sales of 1.25 million square feet worth ₹1,499 crore. Growth was led by Sobha Neopolis, which was launched during the start of the quarter.

Sobha's share in sales value was also the highest ever, growing by 56.2% from last year to ₹1,736 crore. When compared to the September quarter, the figure was up by 36.2%.

The company also launched two new projects in the December quarter with a total saleable area of 3.84 million square feet. It added that strong cash flow during the quarter further enabled the reduction in net debt, although it did not share a specific figure.

Sobha's shares rallied over 18% on Thursday and hit an all-time high of ₹1,343.35, after brokerage firm Motilal Oswal listed it as its top pick from the real estate space for 2024. The brokerage projected a price target of ₹1,400, which as of Wednesday's closing price, implied a potential upside of 25%.

The brokerage also expects Sobha to outperform its peers in terms of growth owing to its vast land reserves and exploring external growth opportunities through its healthy balance sheet.

You can also read more on what the street made of the Realty index's best single-day surge in over two years here.