Mumbai, India – Antique Stock Broking has reiterated its 'Buy' rating for real estate developer Sobha Ltd, maintaining a target price of ₹1,855 per share. This target suggests a substantial 57% upside from Sobha's recent closing price of ₹1,183 per share, according to an October 9, 2026 report.
The brokerage firm highlighted Sobha's strong performance in the first half of fiscal year 2027 (H1 FY27), which positions the company to comfortably exceed its full-year pre-sales guidance. Sobha's pre-sales for H1 FY27 saw a significant 47% year-on-year increase, reaching ₹5,860 crore. This growth was supported by a 32% rise in sales volumes, totaling 3.8 million square feet (msf).
Strong Sales Performance Driven by Premium Projects
Realization rates also improved, climbing 11% to ₹15,604 per square foot. This increase was attributed to the sale of premium inventory across key projects such as Bellevue, Crescent, Altus, and Aranya. Sobha's H1 pre-sales alone accounted for approximately 55% of its full-year guidance, underscoring the company's robust market demand.
In the September quarter, Sobha reported pre-sales of ₹2,210 crore, marking a 16% year-on-year increase, with volumes at 1.42 msf. Antique noted that this performance was bolstered by ongoing project launches and consistent demand for existing inventory.
Robust Launch Pipeline Fuels Future Growth
Antique Stock Broking pointed to Sobha's strong targeted launch pipeline as a key driver for sustained growth. The company has a pipeline of 7.2 msf with an estimated Gross Development Value (GDV) of around ₹10,800 crore. Additionally, Sobha holds ongoing inventory of 13.9 msf, representing a GDV of ₹22,400 crore.
These projects provide clear visibility for continued pre-sales growth, with the brokerage projecting a compound annual growth rate (CAGR) of approximately 24% for Sobha's pre-sales between FY26 and FY29. The report also mentioned an additional 17.1 msf of forthcoming launches, with a GDV of about ₹24,300 crore.
During H1 FY27, Sobha launched projects totaling 7.95 msf, with a GDV of ₹11,200 crore. Regionally, Bengaluru led pre-sales, contributing 58%, followed by the National Capital Region (NCR) at 34%.
Execution and Financial Health Underpin Positive Outlook
Sobha completed 2.56 msf of area during H1 FY27, demonstrating its consistent execution track record. This, along with its premium project portfolio, remains a critical factor in Antique's optimistic assessment.
Financially, Antique anticipates Sobha to generate cumulative collections of approximately ₹40,900 crore over FY26-FY29, translating into operating cash flow of around ₹14,000 crore during the same period. The brokerage concluded that strong cash generation and a cash-positive balance sheet will provide Sobha with the necessary financial flexibility to support its growth initiatives while maintaining its swift execution pace.