For the March quarter, Sobha Developers reported 80% growth in net sales at Rs.1407 crore. Net profits for the same period were up by 73% at Rs.113 crore. With a predominant in the fast growing and high income Southern markets, Sobha has managed to grow profitably with a good management of risk. Even the EBITDA is up by 71% at Rs.267 crore, giving the company an EBITDA margin of nearly 20%, which is very attractive for a realty company.

At the current price of Rs.448, the company is quoting at less than 14 times P/E. That is very attractive considering its solid order book position, very strong execution capabilities and solid financials. You can surely look at Sobha as a part of your real estate portfolio. It is hard to compare with DLF because they operate in different markets and Sobha is a part of the fast growing South market. Also DLF is work in progress as it tries to get rid of its debt fully. You can surely look to investing in Sobha on a standalone basis.