Sobha Share Price Dips Amidst ₹865 Crore Equity Trade

On June 26, Sobha's shares fell by over 3% following a block deal involving 47.4 lakh shares, or 5% of its equity. The transaction, worth ₹865 crore, was conducted at an average price of ₹1,825 per share, marking a 2% discount from the previous closing price.

By 9:48 am IST, Sobha share price had declined nearly 3.4% to ₹1,801.40 on the National Stock Exchange (NSE). Over the past year, Sobha's shares have surged by 190%, almost tripling investors' returns, compared to Nifty's approximately 23% return over the same period.

Details of the buyers and sellers remain undisclosed. However, earlier reports indicate that Anamudi Real Estate LLP, entirely owned by the Godrej family, is likely the seller, aiming to sell 5% of its 9.9% stake in the real estate company. Kotak Securities is likely the sole banker to the deal.

A total of 0.11 lakh shares of the firm changed hands on the BSE, resulting in a turnover of ₹2.09 crore. Over the past year, Sobha's stock has risen by 229% and increased by 87% in 2024. The stock hit its 52-week low of ₹540.42 on August 14, 2023. With a one-year beta of 1, Sobha's stock has shown average volatility over the period.

Technically, Sobha's relative strength index (RSI) is at 45.2, indicating it is neither overbought nor oversold. The stock is trading below its 10-day, 20-day, 30-day, and 50-day moving averages but above its 5-day, 100-day, 150-day, and 200-day moving averages. Sobha Ltd has a market capitalization of ₹19,305 crore and a price-to-earnings (P/E) ratio of 425x.

In the March 2024 quarter, Sobha reported an 86% decline in consolidated net profit to ₹7.02 crore due to lower income, compared to ₹48.57 crore in the same period the previous year. Total income fell to ₹791.25 crore in Q4 from ₹1,240.14 crore in the corresponding period the previous year.

Sobha Ltd is a prominent real estate developer involved in the construction, development, sale, management, and operation of townships, housing projects, commercial premises, and other related activities.