Sobha Retains ‘BUY’ Rating; Target Price Raised to ₹1,840 on Strong Launch Pipeline and Margin Expansion Outlook

Brokerages have maintained a ‘BUY’ rating on Sobha Ltd, revising the target price to ₹1,840 per share (from ₹1,800 earlier), citing robust growth visibility driven by strong project launches and margin improvement over the next two years. Analysts expect FY26 and FY27 to be launch-heavy years, fueling healthy pre-sales momentum and supporting revenue recognition of around 4 million sq. ft. of deliveries during the period. This is projected to significantly lift Sobha’s reported financial performance. EBITDA margins are expected to expand gradually, as higher-priced and higher-margin projects reach completion and are reflected in the financials. Using a Sum-of-the-Parts (SOTP) valuation approach, the revised target price of ₹1,840 factors in contributions from the Residential Business, Commercial Rentals, Contracting & Manufacturing segments, along with the company’s land bank. #Sobha #RealEstate #EarningsOutlook #PresalesGrowth #EBITDAMargin #SOTPValuation #StockMarketIndia #BUYRating #TargetPrice #PropertyMarket