Buy Sunteck Realty; target of Rs 440: ICICI Direct
ICICI Direct's research report on Sunteck Realty
Sunteck Realty's (SRL) revenues recognised grew 140.8% YoY to | 201.5 crore and was above our estimate of | 159.2 crore EBITDA margins expanded robustly by 330 bps YoY to 44.2% (our expectation: 39.7%) mainly on account of a change in project mix Net income grew robustly by 163% YoY to | 58.5 crore (our estimate: | 37.1 crore) mainly on account of robust topline growth and EBITDA margin expansion New sales bookings declined 18% YoY to | 104.0 crore while collections de-grew 30% YoY to | 100.6 crore
Furthermore, the growth capital raised through QIP would be used for generating stable rental portfolio and affordable housing segment. Consequently, we remain positive on SRL’s future growth prospects. We continue to maintain our BUY recommendation on the stock with a target price of | 440/share (1x FY19E NAV).
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