Monday 17 November 2008

Buy Sobha Developers, target of Rs 155: Emkay Global

Emkay Global Financial Services has maintained its buy rating on Sobha Developers with a target of Rs 155 in its November 7, 2008 research report. "Net revenues decreased by 9.3% YoY to Rs 3.0 billion. PAT decreased by 13.0% YoY to Rs 490 million. We are revising our NAV estimates to Rs 367 / share (previous Rs 973), due to a) increase in cost of funds b) delay in projects c) factoring current net debt d) decrease in average realisations and rentals from commercial properties and e) increase in cap rate. We however maintain our BUY rating on the stock with target price of Rs 155 (earlier Rs 554) based on 60% discount to NAV and 2x EV / EBITDA of its contractual income," says Emkay Global Financial Services' research report.

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Source: Moneycontrol

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