Sobha Developers

CMP: Rs 811.85

Target price: Rs 1,172

Morgan Stanley has maintained its ‘overweight’ rating on Sobha Developers, saying it was best placed to ride the buoyant trend in the property market.

“We view Sobha’s competitive positioning favourably, given the company’s strong management team, sizeable landbank in first-and second-tier cities, strong execution capabilities and reasonable valuations,” the Morgan Stanley note to clients says.

“Sobha is currently viewed as a ‘one city developer’, as Bangalore accounts for 95% of its ongoing projects. However, within 12 months, we expect the company to launch projects in 7-8 new city markets (12-14 cities in 3-5 years), which would make it a pan-India player,” the note adds