Sunteck Realty Ltd. share price target

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.

Pre-sales Increased Driven by New Launches Pre-sales for the quarter were up 220% QoQ & 5% YoY to Rs. 3.2 Bn while collections increased 8% YoY to Rs. 1.65 Bn.

Another Weak Quarter, Outlook Positive: Pre-sales value for the quarter was down 76 percent YoY to Rs. 1.01 Bn againstRs. 4.2 Bn in Q2FY19.

Acquires prime property near Lokhandwala in Mumbai Inks asset-light JDA acquisition with Transcon Enterprises SRL announced that it has entered into an agreement with Transcon Enterprises to acquire a premium project near Lokhandwala, Andheri (West) in Mumbai. The acquisition has been made under asset light JDA model and will have a total development of ~1.1 million square foot (msf). SRL will have a revenue share of 54% as per the terms of the JDA. While approvals and clearances will be Transcon's responsibility, SRL will handle construction,...

Mixed Quarter Pre-sales Slowing Down: SRL recorded a 2% YoY increase in pre-sales to Rs. 1.85 Bn and collections surged 18% YoY to Rs. 1.9 Bn. Pre-sales were primarily driven by the company's affordable housing project at Naigaon which was launched in Q2FY19.

SRL achieved sales volumes growth of 93% YoY to 1.63 lakh sq ft (lsf) (198 units) in Q1FY20, led by strong sales of 1.21 lsf (176 units) at Sunteck Westworld Naigaon. The company sold one unit of higher ticket size of ~13,000 sq ft worth | 81 crore at BKC's Signature Island in Q1FY20. While the company recorded 18 units (0.26 lsf) sales at ODC, none was through activation scheme. Overall, SRL clocked pre-sales worth | 185.8 crore (2.3% growth YoY) in Q1FY20. With Avenue-1 & 2 nearing completion, the management expects sales momentum at these projects to pick up further....

Affordable Housing Project Driving Sales: SRL recorded a 55% YoY increase in pre-sales to Rs. 2.9 Bn and collections surged 34% YoY to Rs. 2.06 Bn.