Sunteck Realty Q1 Results Review - Strong Quarter; New Launches Hold Key: Prabhudas Lilladher

Prabhudas Lilladher Report

Sunteck Reality Ltd. reported healthy pre-sales (+30% YoY) and collections (19% YoY) in Q1. Sunteck Realty’s proven ability to market ultra-luxury projects, aggressive and multi-pronged land acquisition capabilities in various micro markets across Mumbai Metropolitan Region is an interesting play on Mumbai’s high value real estate market.

We expect company’s pre-sales to grow +25% compound annual growth rate over FY24-26E aided by ongoing projects and strong new launches pipeline including new Dubai joint venture project.

Further given likely strong cash flow generation and JV with IFC, we see Sunteck to step up new project additions which will be a key catalyst for stock performance.

Adoption of asset light model has enabled the company to acquire scale without straining its balance sheet. Maintain ‘Buy’ rating with a revised target price of Rs 700/share as we incorporate Dubai project.

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