On Tuesday, Sobha Limited’s share price surged over 6%, reflecting investor optimism following the company’s latest business update for the quarter ending March 2024 and the full financial year of 2025. The stock experienced a notable jump, reaching ₹1165.70 on the Bombay Stock Exchange (BSE) at one point during the trading day.
Sales Performance Overview
In FY 2025, Sobha reported a total sales value of ₹6,277 crore, a decline from ₹6,644 crore in FY 2024. The company’s sales value for FY 2025 dropped to ₹4,960.5 crore, down from ₹5,415 crore the previous year. However, the fiscal fourth quarter ending March 2025 showed promising growth, with sales value climbing to ₹1,370.2 crore, compared to ₹1,273.5 crore during the same period last year.
- Sales Value FY 2025: ₹6,277 crore
- Sales Value FY 2024: ₹6,644 crore
- Q4 FY 2025 Sales: ₹1,370.2 crore
Average Price Realization Increases
Sobha’s average price realization for FY 2025 rose significantly to ₹13,412 per square foot, marking a 22.8% increase from ₹10,922 per square foot in the previous year. Specifically, for Q4 FY 2025, the average price realization was ₹11,781 per square foot, up from ₹11,230 year-on-year.
Recent Share Price Trends
Despite the recent uptick, Sobha’s share price has faced considerable pressure in the short term. Over the past month, the stock has dropped more than 9%, and it has seen a staggering decline of over 28% in the last three months. A broader six-month trend shows a correction exceeding 35%, while the stock has experienced around a 25% decrease over the past year.
Long-Term Performance Outlook
Despite these short-term fluctuations, Sobha has demonstrated impressive long-term growth, boasting multibagger returns of 157% over the past two years and an astounding 592% increase over the last five years.
Market Analyst Insights
Anshul Jain, Head of Research at Lakshmishree Investment, pointed out that the real estate sector is currently underperforming, with Sobha shares being particularly weak. He highlighted that "Sobha stock has completely missed the market bounce," noting a recent dip below significant support levels at ₹1,150. This trend indicates a prevailing bearish sentiment, and without signs of recovery, he suggests that the immediate downside target for Sobha shares could be around ₹916, a critical weekly swing low.
In light of this assessment, Jain advises against initiating new long positions in Sobha or the broader real estate sector until market momentum shifts. As of 12:25 PM on Tuesday, Sobha shares were trading 2.19% higher at ₹1,118.60 on the BSE.
For more insights into the real estate market, visit The Economic Times and explore related articles.
