Time period given by analyst is one year when Sunteck Realty Ltd. price can reach defined target.
Sunteck Realty Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 5533.71 Crore) operating in Real Estate sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 96.12 Crore, down -50.63 % from last quarter Total Income of Rs 194.67 Crore and up 39.49 % from last year same quarter Total Income of Rs 68.91 Crore. Company reported net profit after tax of Rs 4.39 Crore in latest quarter.
Investment Rationale
Sunteck Realty’s (SRIN) has launched Phase 1 of its affordable housing project in Vasind, located in Mumbai Metropolitan Region’s (MMR) extended eastern suburbs. The project which was acquired under the asset light JDA model in FY21 has a total saleable area of 2.6msf in which SRIN has 80% revenue share. The brokerage estimates revenue of Rs2.7bn for Phase 1 of the project (1,000 units launched) and the overall project to have revenue potential of Rs12-13bn with pre-tax operating surplus of over Rs5.0bn and NAV accretion of Rs2.8bn (Rs20/share). It maintains BUY rating on SRIN with a revised target price of Rs475/share (earlier Rs457) based on 1x NAV adjusting for project level adjustments. Key risks to the call are slowdown in the Mumbai property market volumes and fall in residential /commercial prices.
Promoter/FII Holdings
Promoters held 67.2 per cent stake in the company as of June 30, 2021, while FIIs held 21.3 per cent, DIIs 4 per cent and public and others 7.6 per cent.
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