SOBHA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | SOBHA | Market Cap | 13,617 Cr. | Current Price | 1,270 ₹ | High / Low | 1,732 ₹ |
| Stock P/E | 59.1 | Book Value | 424 ₹ | Dividend Yield | 0.24 % | ROCE | 6.98 % |
| ROE | 3.31 % | Face Value | 10.0 ₹ | DMA 50 | 1,414 ₹ | DMA 200 | 1,470 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | -0.26 % | PAT Qtr | 30.7 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 35.9 | MACD | -51.3 | Volume | 1,34,474 | Avg Vol 1Wk | 1,66,887 |
| Low price | 1,075 ₹ | High price | 1,732 ₹ | PEG Ratio | -7.48 | Debt to equity | 0.23 |
| 52w Index | 29.7 % | Qtr Profit Var | 11.4 % | EPS | 21.6 ₹ | Industry PE | 25.5 |
📊 SOBHA trades at ₹1,270, well below its 50DMA (₹1,414) and 200DMA (₹1,470), showing weak technical momentum. Indicators (RSI 35.9, MACD -51.3) suggest bearish sentiment. Fundamentals are mixed: strong book value and low debt, but declining profits, weak ROE/ROCE, and expensive valuation compared to industry PE. This makes SOBHA a cautious swing trade candidate.
💡 Optimal Entry Price: Around ₹1,250–1,270 (near current support).
🔔 Exit Strategy if Holding: Consider exiting near ₹1,400–1,420 (around 50DMA resistance) unless momentum improves further.
✅ Positive
- Book value of ₹424 provides strong asset backing.
- Debt-to-equity ratio of 0.23 indicates financial stability.
- EPS of ₹21.6 shows earnings consistency.
- Quarterly profit variation (+11.4%) indicates some improvement year-on-year.
⚠️ Limitation
- High P/E of 59.1 compared to industry PE of 25.5.
- Weak profitability: ROE 3.31%, ROCE 6.98%.
- Dividend yield is low at 0.24%.
- PEG ratio of -7.48 suggests poor growth valuation.
📉 Company Negative News
- Quarterly PAT dropped sharply from ₹104 Cr. to ₹30.7 Cr.
- Price trading below both 50DMA and 200DMA.
- FII holdings decreased by 0.15% and DII holdings by 0.26%, showing reduced institutional confidence.
📈 Company Positive News
- Strong book value compared to peers.
- Low debt enhances financial resilience.
- EPS remains positive despite profit decline.
🏭 Industry
- Industry PE at 25.5, much lower than SOBHA’s valuation.
- Real estate sector benefits from housing demand and infrastructure growth.
- Margins remain under pressure due to rising costs and cyclical demand.
🔎 Conclusion
SOBHA is financially stable with strong book value and low debt but suffers from weak profitability, expensive valuation, and poor technicals. It is a cautious swing trade candidate if entered near ₹1,250–1,270 with a target around ₹1,400–1,420. Risk management is essential due to declining profits and weak momentum.