Sobha Developers declared its 4QFY2009 results and posted a topline of Rs147.2 crore (Rs474.1 crore) 69% de-growth y-o-y. For the full year, topline de-grew by 32.0% to Rs967.9 crore.
On the operating front the company experienced a margin contraction of 440bp which can be mainly contributed to dip in the margins from the Real Estate Sector.
On the back of dismal performance on the topline and operating front the bottomline de-grew by 96.2% at Rs2.7 crore for the 4QFY2009. For the full year, company posted a bottomline of Rs109.7 crore (Rs228.3 crore).
We maintain NEUTRAL view on the stock even though the valuations look attractive at current levels as there are negatives surrounding the business model and the company’s balance sheet is highly leveraged.