Nuvama has revised its target price for Sunteck Realty shares upwards to Rs 690 from the previous Rs 591, a 16% upside from the previous target price and nearly 17% upside from the current market price of Rs 587. This comes on the back of strong pre-sales, steady collections, and a robust balance sheet, despite the lack of new project launches in the first quarter of FY25.
In Q1FY25, Sunteck Realty reported pre-sales of approximately INR 5 billion, marking a 30% year-on-year increase, although down 26% sequentially. The company also recorded collections of around INR 3.4 billion, up 19% YoY and 16% QoQ, demonstrating its ability to maintain cash flow and operational efficiency.
Despite not launching any new projects during the quarter, SRL’s future outlook remains positive, with plans to introduce the Nepean Sea Road project and new phases in existing projects within the current fiscal year. Furthermore, the company made its first foray into the Dubai property market, signaling its intent to diversify and expand its footprint beyond India.
Nuvama’s optimism is underpinned by SRL’s strong balance sheet, which boasts a net debt-to-equity ratio of just 0.01x, indicating minimal leverage and significant financial stability. This, coupled with the expected upturn in the housing cycle, positions Sunteck Realty favorably to double its project pipeline over the next three years.
