Sobha share price surges 12% to hit a fresh all-time high; should you buy the stock?
₹1,254.15 in morning trade on BSE on Thursday, January 4. This came right after the stock's significant surge of nearly 11 per cent in the previous session. Sobha share price opened at ₹1,125.95 against the previous close of ₹1,116.65 and jumped over 12 per cent to hit its record high level.
In the last one year, Sobha's share price has more than doubled, outperforming the BSE Realty index, which itself went up by 89 per cent in the same time. Sobha share price has been even stronger in the last six months, rising by a whopping 120 per cent, while the BSE Realty index increased by 54 per cent during that time. Sobha share price has been in the green since September 2023 on a monthly scale.
The stock witnessed strong traction after brokerage firm Motilal Oswal Financial Services said the stock is one of its top picks for the year 2024. Also Read: Adani Ports share price gains over 2% as HSBC raises target after SC verdict on Hindenburg case The brokerage firm has a buy call on the stock with a target price of ₹1,400, implying a 25 per cent upside. Motilal Oswal believes that as the company unlocks its vast land reserves and explores growth opportunities beyond its existing land bank, it will provide further growth visibility.
Project launches on its large land parcels in Bengaluru and Tamil Nadu will drive re-rating for its existing land valuation. "After underperforming its listed peers on pre-sales growth over FY21-23, we believe Sobha is set to outperform in terms of growth given its focus on unlocking its vast land reserve and exploring external growth opportunities through its healthy balance sheet, said Motilal Oswal. Also Read: Coal India, ONGC, Oil India, are among the top PSU stock picks by Religare paying high
. Read more on livemint.com
