Shares of property developer Sobha opened more than 4% higher on April 10 after the company said its quarterly sales hit an all-time high of Rs 1,463 crore, up 3% from the previous quarter and 32% from last year.

A few weeks ago, detectives from the income tax department raided the company’s offices in Bengaluru and Chennai.

The stock was trading at Rs 465 on the NSE at 9:30 am, up more than 3%. It is currently trading 13% above its 52-week low hit on March 29.

The company also said it recorded an all-time high in annual sales of Rs 5,198 crore with an average selling price of Rs 9,200 per square foot. It has launched nine residential projects with a combined saleable area of ​​3.96 million sq ft and commenced operations in two new cities, Trivandrum and Hyderabad, in FY23.

While the fourth-quarter update pushed the stock higher, tax detectives raided offices in Sobha and its factories that make wood, aluminium and concrete products last month.

In January, Bruhat Bengaluru Mahanagara Palike cancelled the certificate of occupancy of a 2,000-unit apartment in Sobha City, claiming that the builder had submitted a bogus certificate of no objection from the fire department.

This follows the Enforcement Directorate (ED) seizure of Sobha’s Rs 201 crore land assets in Kerala under the Prevention of Money Laundering Act 2002 (PMLA) in December.

Nuvama Institutional Equities has a ‘buy’ call on the stock with a target price of Rs 646.

The stock got a boost on April 6 after the Reserve Bank of India announced a pause in rate hikes. This means the rise in home loan interest rates will be suspended, which is a big positive for the real estate industry. Sobha has an average target price of Rs 788, representing an upside of 70%, according to Trendlyne data.