ScoreWhy is Sobha Ltd. ?
1
Weak Long Term Fundamental Strength with a -25.65% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.09
- The company has been able to generate a Return on Equity (avg) of 3.62% signifying low profitability per unit of shareholders funds
2
With ROE of 3.2, it has a Expensive valuation with a 3.5 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.53%, its profits have risen by 174.1% ; the PEG ratio of the company is 0.8
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.37% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.53% returns
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.49%
EBIT Growth (5y)
-26.39%
EBIT to Interest (avg)
1.04
Debt to EBITDA (avg)
5.04
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
0.63
Tax Ratio
26.71%
Dividend Payout Ratio
57.94%
Pledged Shares
0
Institutional Holding
32.04%
ROCE (avg)
7.74%
ROE (avg)
3.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
113
Industry P/E
35
Price to Book Value
3.50
EV to EBIT
100.77
EV to EBITDA
60.62
EV to Capital Employed
4.05
EV to Sales
3.44
PEG Ratio
1.05
Dividend Yield
0.20%
ROCE (Latest)
4.89%
ROE (Latest)
3.22%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PAT(Latest six months)
At Rs 87.96 cr has Grown at 84.09%
DEBT-EQUITY RATIO(HY)
Lowest at 0.23 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 1,896.28 cr
DEBTORS TURNOVER RATIO(HY)
Highest at 26.74 times
-12What is not working for the Company
NET SALES(Q)
At Rs 943.11 cr has Fallen at -20.1% (vs previous 4Q average
PBT LESS OI(Q)
At Rs -19.46 cr has Fallen at -367.0% (vs previous 4Q average
PAT(Q)
At Rs 15.43 cr has Fallen at -58.5% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 194.79 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Sobha
Debt-Equity Ratio - Half Yearly
Lowest at 0.23 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Cash Equivalents - Half Yearly
Highest at Rs 1,896.28 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Highest at 26.74 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Sobha
Net Sales - Quarterly
At Rs 943.11 cr has Fallen at -20.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,181.07 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -19.46 cr has Fallen at -367.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 7.29 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 15.43 cr has Fallen at -58.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 37.18 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 194.79 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
