Sunteck Realty Ltd. share price target

Company Update

Sunteck Realty, one of the leading real estate developers in the Mumbai Metropolitan Region (MMR), has a presence in South & Central, Western and Eastern Suburbs.

Sunteck Realty (SRIN) reported presales of INR6.35b in 3QFY25, up 40% YoY (in line with our estimate of INR6.5b). Traction in uber-luxury projects nearly tripled, with bookings of INR4.2b, or 66% of overall presales. The upper-middle-income segment accounted for 19% of presales

Sunteck Realty (SRIN) reported pre-sales of INR5.2b in 2QFY25, up 33% YoY (13% lower than our estimate).

Sunteck reported pre-sales of INR5b in 1QFY25, up 30% YoY (in line). Traction in uber-luxury projects remained intact, with bookings of INR1.1b or 22% of overall pre-sales.

Reviving the Luxury Experience

Sunteck Realty (SRIN) clocked healthy Q3FY23 sales bookings of Rs4.0bn (I-se estimate of Rs3.5bn) driven by the ODC, Goregaon (Rs1.9bn) project and Sunteck Beach Residences (Rs1.1bn) in the extended western suburb of Vasai during the quarter.

Sunteck Realty (SRIN) clocked healthy Q2FY23 sales bookings of Rs3.4bn (I-sec estimate of Rs3.1bn) driven by the ODC, Goregaon (Rs2.0bn) project and Sunteck Beach Residences (Rs0.7bn) in the extended western suburb of Vasai during the quarter.

Sunteck Realty (SRIN) clocked healthy Q1FY23 sales bookings of Rs3.3bn (I-sec estimate of Rs2.8bn) driven by the launch of the Sunteck Beach Residences (SBR) in the extended western suburb of Vasai during the quarter

Sunteck Realty (SRIN) clocked healthy Q4FY22 sales bookings of Rs5.0bn (up 43% QoQ) driven by a pickup in BKC luxury project sales of Rs1.6bn while continued momentum in ODC, Goregaon (Rs1.0bn) and Naigaon (Rs2.2bn including new Phase 3) also contributed to sales. In FY22, the company has clocked Rs13.0bn of sales bookings (up 27% YoY) and collections of Rs10.5bn (up 35% YoY).

Sunteck Realty (SRIN) has announced a new residential project acquisition of
10msf in Shahad, located in Mumbai Metropolitan Region’s (MMR) extended
Eastern suburbs. The project has been acquired under the asset light JDA model
in which SRIN may have 75-80% revenue share. Assuming development over
FY24-35E, we estimate gross revenue of Rs91.2bn (SRIN share at Rs72.6bn) with
pre-tax operating surplus of Rs26.6bn and NAV accretion of Rs14.4bn
(Rs103/share). We maintain our BUY rating on SRIN with a revised target price of
Rs580/share (earlier Rs475) based on 1x NAV incorporating the new Shahad
acquisition. SRIN has now added four new projects since Mar’20 with the three
earlier projects in Vasai/Vasind/Borivali adding 8msf of saleable area. Key risks to
our call are slowdown in the Mumbai property market volumes and fall in
residential/commercial prices.