Steady quarter for Sunteck; outperforms on sales: IDFC
Securities research firm IDFC has rated Sunteck Realty (SRL) as an â€œoutperformerâ€ with a price target of Rs 640 by March next year.
Securities research firm IDFC has rated Sunteck Realty (SRL) as an "outperformer" with a price target of Rs 640 by March next year.
The brokerage sees a steady quarter for Sunteck Realty with continued traction in projects at the Bandra-Kurla Complex, steady sales in Goregaon, a strong pipeline of new launches and positive operational cashflows.
However, high taxes, other expenses and construction delays in a few projects have brought down profit-after-tax estimates for FY13 by by 35 percent, the report added. Sunteck Realty sold around 90,000 sqft worth Rs 160 during the quarter as against 1 lakh sqft sold in Q2FY13 with sales value of Rs 250 crore.
"With Signature Island in the finishing stages and construction in full pace at Isles and Pearl, traction in these projects have picked up sharply in the last few quarters. SRL is among the few Mumbai-focused players with a strong balance-sheet, low debt and a diversified project portfolio," IDFC analysts Vineet Chandak and Nitin Agarwal say in the report.