sobha share price: Sobha shares jump 10% in 4 sessions. Here’s what triggered this rally

Sobha shares jumped over 6% on the NSE on Thursday, extending gains for the fourth session. The stock has been witnessing a free run since the announcement of the company’s quarterly earnings, where it reported a 242% year-on-year (YoY) jump in its Q4 net profit.

Following the earnings, top brokerages, including Jefferies, Kotak Institutional Equities, Nuvama, and ICICI Securities, have recommended a ‘Buy’ on the counter.

The stock is up 10% over the last four trading sessions and more than 7% since the results announcement on May 30.

The Bengaluru-based real estate company reported a consolidated net profit of Rs 48.60 crore for the January-March quarter versus Rs 14.2 crore in Q4FY22. The consolidated revenue from operations for the reporting period stood at Rs 1,210 crore, up 70% over Rs 710 crore in Q4FY22. The company also announced a dividend of Rs 3/share.

Over the last month, Sobha shares have returned nearly 19%, outperforming the Nifty50, which has given just over 2% returns. However, the stock has been an underperformer over a one-year and six-month basis, giving under 1% and negative returns of 10%, respectively. Meanwhile, the benchmark has given 12% returns in 1 year and negative 1.35% over the past six-month period.

The traded volumes for this mid-cap stock with a market capitalisation of Rs 5,282 crore was over 2.36 million on the NSE around noon.

The counter is trading above its 50-day moving average while lower than 200-day moving average, according to Trendlyne data.Recommendations by top brokerages
Jefferies: Buy | Target: Rs 683
Kotak Institutional Equities: Buy | Rs 700
Nuvama: Buy | Target: Rs 679
ICICI Securities: Buy| Target: Rs 891

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)