Shares of Sobha Limited recovered from day’s low during Wednesday’s intraday trading session, after rallying over the past few trading sessions. The Bengaluru-headquartered real-estate developer is set to see a strong year and surpass pre-sales of ₹100 billion in the financial year 2026-27E, according to Emkay Global Financial Services which sees 56% upside in the realty stock.
The real estate stock was trading marginally higher during Wednesday’s intraday trading session after hitting an intraday low of ₹1,223.35 per share today. THe stock has surged close to 4.36% over the past five trading sessions.
Sobha share price prediction
The company’s margin is expected to improve from the third quarter of FY27, driven by strong launch pipeline, healthy absorption, and potential to surpass pre-sales, according to Emkay Global. “We expect margins to improve from 3QFY27 onward, likely reaching the 20% level in 2HFY27 and improving progressively thereafter,” noted the brokerage in its report.
Sobha’s has strengthened its momentum in launches with a total of 14.8 million square feet (msf) launch in FY 26, expected 15 msf order in FY27. “In 1QFY27, SOBHA launched 6.9msf; for the remainder of the year, there is a strong launch pipeline of 8.2msf, including projects in Gurugram, Bengaluru, Chennai, Hyderabad, and Thrissur with GDV of Rs120bn, of which two projects.”
Margin remains a key pain point
Despite expectations of margin improvement in the coming quarters, it continues to remain a key pain point for the company. Sobha’s margins remained muted in FY23-26 with FY26 and Q1FY27 margins at around 6%. Bu the ongoing projects have higher mix of high-margin projects which also include owned projects with project level EBITDA margins upward of 35%.
Stronghold in Bengaluru market
The company is also expected to benefit from robust demand in the Bengaluru real-estate market. Given easing hurdles in the real-estate environment in the metro city, there can be a surge in supply from real estate firms, especially well-funded developers in Bengaluru.
Sobha share price prediction
Emkay Global gave a ‘Buy’ rating for the stock with a target price of ₹1,900 per share for 12 month duration, indicating a 56.3% upside in valuation. “We maintain BUY and TP of Rs1,900, based on 8x Sep-28E EV/embedded EBITDA, at 21% premium to NAV (the stock currently trades at a 23% discount to NAV).”
Sobha share price trend
The stock was trading 0.25% higher at ₹1235.10 per share on BSE with a market capitalisation of ₹13,207.27 crore at 11:07 am on Wednesday. The stock touched its 52-week high of ₹1,730.90 per share on November 10, 2025. The stock dipped to its 52-week low of ₹1,131.10 per share on April 2, 2026. Its return on equity (ROE) stood at 9.35%. The stock has delivered close to 2.96% return in six months and negative 21.69% return in one year. Its share price value has declined nearly 12%-14% year to date (YTD). Over the past two years the stock has declined 39% in two years.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
