Buy Sunteck Realty; target of Rs 745: Motilal Oswal

Motilal Oswal is bullish on Sunteck Realty has recommended buy rating on the stock with a target price of Rs 745 in its research report dated January 21, 2025.

Broker Research

January 22, 2025 / 13:12 IST

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26 Aug, 2025 12:21

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Motilal Oswal's research report on Sunteck Realty

Sunteck Realty (SRIN) reported presales of INR6.35b in 3QFY25, up 40% YoY (in line with our estimate of INR6.5b). Traction in uber-luxury projects nearly tripled, with bookings of INR4.2b, or 66% of overall presales. The upper-middle-income segment accounted for 19% of presales. During 9MFY25, the company achieved presales of INR16.6b (up 34% YoY), fueled by the strong traction in uber-luxury projects. SRIN achieved 65% of the total presales guidance for FY25 (INR25b). Collections declined 23% YoY to INR3.36b for 3QFY25. SRIN achieved INR9.45b (flat) collections for 9MFY25. Its collection efficiency was 57%. The net debt-to-equity ratio stood at zero, with a net cash surplus of INR610m at the end of 3QFY25. The company remains debt-free and intends to utilize the surplus cash to further strengthen its project pipeline.

Outlook

We value its residential segment based on the NPV of existing pipelines and its commercial segment based on an 8% cap rate on FY25E EBITDA. We also assign INR14b of value to future project additions through the IFC platform. We reiterate our BUY rating on the stock with a TP of INR745, implying a 51% upside potential.

For all recommendations report, click here