Sobha Ltd

NSE: SOBHA BSE: 532784

₹1294.60

(0.69%)

Sat, 29 Aug 2026, 10:03 pm

Market Cap (in Cr)13866.56

PE Ratio60.03

Dividend0.46

Finance

Real Estate Development

24.5K

Sobha Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are well covered by earnings (5.2x coverage).
Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).
Sobha's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
Sobha's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Pros

Sobha is expected to become cash flow positive in 2 years.
Performance (ROE) is expected to be above the current IN Real Estate industry average.
Sobha's revenue growth is expected to exceed the India market average.

Cons

Sobha's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Sobha's earnings growth is positive but not above the India market average.
Sobha's earnings growth is positive but not above the low risk savings rate of 7.2%.
Sobha's earnings are expected to decrease over the next year.
Sobha's net income is expected to decrease over the next 2 years.
Sobha is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
A decline in Sobha's performance (ROE) is expected over the next 3 years.
Sobha's revenue is expected to increase but not above the 50% threshold in 2 years time.
Sobha's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

Pros

Sobha is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Sobha is profitable, therefore cash runway is not a concern.
Sobha is profitable, therefore cash runway is not a concern.
Debt is covered by short term assets, assets are 3x debt.
Sobha's cash and other short term assets cover its long term commitments.

Cons

Operating cash flow is negative therefore debt is not well covered.
The level of debt compared to net worth has increased over the past 5 years (75.6% vs 131.3% today).
Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
Sobha's level of debt (131.3%) compared to net worth is high (greater than 40%).
High level of physical assets or inventory.

Pros

The tenure for the Sobha board of directors is about average.
Jagdish's compensation has been consistent with company performance over the past year, both up more than 20%.
More shares have been bought than sold by Sobha individual insiders in the past 3 months.
The tenure for the Sobha management team is about average.

Cons

Jagdish's remuneration is higher than average for companies of similar size in India.

Pros

Cons

Pros

Sobha's 1-year earnings growth exceeds its 5-year average (38% vs 11.4%)
Sobha's year on year earnings growth rate has been positive over the past 5 years.
Sobha used its assets more efficiently than the IN Real Estate industry average last year based on Return on Assets.
Sobha has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Sobha's earnings growth has exceeded the IN Real Estate industry average in the past year (38% vs 9.7%).

Cons

Sobha has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Pros

Sobha is good value based on earnings compared to the IN Real Estate industry average.
Sobha is good value based on earnings compared to the India market.

Cons

Sobha's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Sobha's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Sobha is overvalued based on assets compared to the IN Real Estate industry average.
Sobha is poor value based on expected growth next year.
532784 underperformed the Real Estate industry which returned -24.3% over the past year.
532784 underperformed the Market in India which returned -14.5% over the past year.
BSE:532784 is up 2.9% underperforming the Real Estate industry which returned 13.9% over the past month.
BSE:532784 is up 2.9% underperforming the market in India which returned 8% over the past month.