Stock

Broker's call: Sunteck Realty (Buy)

| Updated on February 18, 2021 Published on February 18, 2021

Emkay Global

Sunteck Realty (Buy)

Target: ₹412

CMP: ₹360

Sunteck Realty’s Q3 FY21 performance was marked by yet another strong show in its pre-sales booking, up 7 per cent y-o-y to ₹349 crore. Collections jumped 53 per cent y-o-y. Reported financials, however, were not comparable due to a change in accounting even as the operational performance was strong.

The strong pre-sales were driven by the launch of new inventory at the ODC Goregaon project and continued strength in its Naigaon projects. Some of the ready-to-move-in inventory such as Signia High, Gilbird Hill and Signia Waterfront also witnessed reasonable traction during the quarter.

Strong collections helped Sunteck bring down Net D/E ratio to 0.24x D/E, one of the best in the industry even as the company continues to expand through the asset-light JV/JDA route. It also keeps options open for outright land purchase in case a good opportunity arises.

We raise estimates modestly by 1-2 per cent (sticking to previous accounting for now), while our NAV goes up to ₹412/share (from ₹393 earlier) on better pre-sales and roll-over to March 23.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 18, 2021
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.