Buy Sunteck Realty; target of Rs 540: Motilal Oswal

BUY

Motilal Oswal's research report on Sunteck Realty

SRIN reported presales of INR6.57b in 1QFY26, up 31% YoY (16% above our estimate). About 92% of total presales in the quarter came from the uber-luxury and premium luxury segments. Collections were up 3% YoY at INR3.51b in 1QFY26 (21% below estimates). Net operating cash flow surplus stood at INR1.08b, up 8% YoY. The net debt-to-equity ratio stood at 0.02x. The company added a redevelopment project in Andheri with a development potential of 0.28msf and GDV of INR11b. Fitch (India Ratings) has affirmed the long-term credit rating at 'IND AA/Stable'.

Outlook

We value its residential segment based on the NPV of existing pipelines and its commercial segment based on an 8% cap rate on FY26E EBITDA. We reiterate our BUY rating on the stock with a TP of INR540, implying a 27% upside potential.

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Sunteck Realty_21072025_Motilal Oswal