Friday, February 23, 2024
Home News Sobha slips 5%, nears 52-week low on raid by Income-Tax department

Sobha slips 5%, nears 52-week low on raid by Income-Tax department

Shares of Shobha slumped 5.4 per cent to Rs 491.40 on the BSE in Wednesday’s intra-day trade after the real estate company announced that a search was being conducted by the Income Tax Department at its registered office and other premises of the company.

At 12:12 pm, Sobha was trading at Rs 492.60, down 5.2 per cent on the BSE. It was also quoting near its 52-week low of Rs 480.35, touched on June 20, 2022. In comparison, the S&P BSE Sensex was up 0.13 per cent at 58,152.

Sobha, however, said that being a responsible company, all the concerned employees/employees of the company are extending their full cooperation to the authorities.

In the past one month, the stock has declined 15 per cent compared to a 2.6 per cent fall in the S&P BSE Sensex. Moreover, it has declined 30 per cent in the last six months as against 1.5 per cent fall in the benchmark index.

For the October-December (Q3FY23) quarter, Sobha’s net profit almost halved, impacted by higher cost of land acquisition. The company’s consolidated net profit declined by nearly 48 per cent to Rs 31.8 crore from Rs 61.4 crore in the year-ago quarter. Meanwhile, total expenses rose 49 per cent to Rs 779 crore over the year-ago quarter.

The group primarily operates from Bengaluru, with around 67 per cent of its total sales coming from the region. It also serves nine other cities including Pune, Delhi NCR and Chennai.

“The Indian real estate industry is highly cyclical with volatile cash flows. The sector is also subject to multiple regulatory approvals, and timely receipt of the same is critical for launching new projects within stipulated timelines and for future sale/collection is,” said India Ratings and Research (Ind-Ra).

Significant increase in scale and cash flow diversification while improving liquidity and credit metrics could be positive for the company’s rating. Lower-than-expected demand for new projects, resulting in higher-than-expected concentration of cash flows in selected projects, or cash flow losses, or deviation from stated land acquisition strategy resulting in higher dependence on debt, and/or Ind- Ra said in its recent rating action on Shobha that net debt/net working capital exceeding 0.65x on an ongoing basis would warrant a negative rating action.



Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...


Please enter your comment!
Please enter your name here


Most Popular

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Weekly Income Plan on Pocket Option Platform”

Get weekly returns on Pocket Option It turned out that October was a terrific month for me. I am still able to generate money every...

Recent Comments