Sobha (SOBHA)

FairStock Score: 49/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹1,328.20, Sobha's ₹14,206 Cr market cap asks investors to pay 61.72 times earnings and 3.01 times book. For a Graham-style buyer, that is not a starting point for safety. Book value is ₹441.31, and the Graham Number is only ₹357.38, leaving a margin of safety of -290.37%. The business may be a residential and commercial developer with promoter holding of 52.88%, which aligns interests, but the financial quality is mixed. ROE is just 3.12% and ROCE 6.44%; those are not the returns of a durable moat. Debt/equity of 0.25 is manageable, but free cash flow is -₹980 Cr, and the latest quarter earned only ₹15 Cr on ₹943 Cr of sales. Recent sales growth of 35.03% and profit growth of 26.51% look encouraging, yet the five-year revenue CAGR is only 1.47%, revealing a lumpy, cyclical record rather than consistent compounding. The Altman Z-score of 1.09 is in distress territory, and EV/EBITDA of -135.08 is a red flag for earnings quality. Piotroski F-score of 6/9 is decent, but PEG of 1.95 and dividend yield of 0.45% do not compensate. FairStock score of 49/100 captures the mixed picture. I would call Sobha a cyclical real estate play, not a wonderful business at a fair price. Until cash flow turns positive and ROE/ROCE improve, the stock looks expensive. I would watch from the sidelines.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer