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Last Updated : May 07, 2019 02:19 PM IST | Source: Moneycontrol.com

Hold Sunteck Realty; target of Rs 520: ICICI Direct

ICICI Direct recommended hold rating on Sunteck Realty with a target price of Rs 520 in its research report dated May 06, 2019.

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ICICI Direct's research report on Sunteck Realty


Sunteck Realty (SRL) clocked sales volume of 2.79 lsf (318 units) in Q4FY19 [our estimate: 2.4 lakh sq ft (lsf)]. New sales bookings grew strongly by 55.4% YoY to Rs 289.0 crore while collections grew 33.9% YoY to Rs 206.5 crore in Q4FY19. On the financials front, revenues recognised grew 30.5% YoY to Rs 269.7 crore (our estimate: Rs 277.8 crore). EBITDA margins contracted sharply by 19 percentage points (pp) YoY to 32.9%. PAT grew 3.0% YoY to Rs 63.4 crore on account of sharp contraction in EBITDA margin.


Outlook


However, with the ~40% run up in stock the past three months, we see limited upside at current valuations. Thus, we have a HOLD rating on the stock with a target price of Rs 520/share (1x FY20E NAV).


For all recommendations report, click here


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First Published on May 7, 2019 02:19 pm
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