Buy Sunteck Realty, target price Rs 441: Edelweiss

Edelweiss has buy call on with a target price of Rs 441. The current market price of Sunteck Realty Ltd. is Rs 299.75. 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 4375.73 Crore) operating in Real Estate sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 194.67 Crore, down -6.70 % from last quarter Total Income of Rs 208.66 Crore and up 96.51 % from last year same quarter Total Income of Rs 99.06 Crore. Company reported net profit after tax of Rs 9.89 Crore in latest quarter.

Investment Rationale
RERA-driven consolidation bodes well for SRL given its low gearing, which provides room to add projects and grow its NAV. The brokerage remains positive on the company’s long term prospects and maintains ‘BUY/SN’ with a TP of INR 441 (on a par with NAV of INR441) while continuing to follow the old accounting standards.

Promoter/FII Holdings
Promoters held 67.2 per cent stake in the company as of Dec 30, 2020, while FIIs held 23.6 per cent, DIIs 3.6 per cent and public and other 5.6 per cent.