Sobha Developers Muted Q4 FY11, steady FY12E: Emkay

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Sobha Developers

Muted Q4 FY11, steady FY12E

NOT RATED

CMP: Rs 278                                       Target Price: NA

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n     Sobha Developers made sales of 2.8 msf against target of 3.0 msf. Target for FY12 set at 3.0-3.5 msf on new launches of  ~5 msf and unsold inventory of 2.8 msf

n     Gross debt at Rs 12bn, Net Debt-to-equity stands at 0.64x. Target net debt-to-equity for FY12 at 0.5-0.6x. Interest cost incurred to the tune of Rs 1.8bn for FY11

n     Contractual business outstanding orderbook at Rs 8.7bn. The business segment added revenue of Rs 4.2bn in FY11 and expected to add Rs 5bn in FY12

n     Stock currently trades at P/BV 1.5x on FY11 BV / share of Rs189. At peak price in October 2010, the stock was trading at 2.1x P/BV