Sobha shares tank 5% as income tax department raids real estate developer’s office, other premises

By admin On Mar 22, 2023

Shares of Sobha Ltd fell sharply in Wednesday’s trade, extending their fall for the third consecutive session. The stock declined 5.39 per cent to hit a day low of Rs 491.40 over its previous close of Rs 519.40. Today’s sharp movement in the share price came after the company, in an exchange filing, informed that the Income Tax (I-T) department is carrying out a search at its registered office and other premises.

“We would like to inform you that a search by the I-T department is being carried out at the registered office and other premises of Sobha Limited. Further, as a responsible company, all the concerned employees/staff of the company are extending their full cooperation to the officials,” it stated.

The Bengaluru-based company didn’t specify the reason for the search.

Around 30,000 shares changed hands today on BSE, which was around three times compared to the two-week average volume of 9,315 shares. Turnover on the counter stood at Rs 1.48 crore, commanding a market capitalisation (m-cap) of Rs 4,677.32 crore. There were 12,825 buy orders today against sell orders of 10,423 shares.

At today’s low level of Rs 491.40, the stock traded just 2.30 per cent above its 52-week low of Rs 480.35, hit on June 20 last year. That said, it has declined 35.17 per cent from its one-year high level of Rs 758, touched on March 23, 2022.

The counter has lost around 16 per cent so far this year.

The stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 27.15. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 54.14.

The scrip has an average target price of Rs 788.40, Trendlyne data showed, suggesting a potential upside of 59.63 per cent. It has a one-year beta of 0.93, indicating low volatility on the counter.

Meanwhile, Indian equity benchmarks traded slightly higher in late morning deals today, led by gains in automobile, metals and energy stocks.

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