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