Sunteck Realty Ltd. share price target

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. Pre-sales were primarily driven by the company's a?ordable housing project at Naigaon which was launched in Q2FY19. SRL sold 223 units in the project amounting to Rs. 0.73 Bn.

SRL's sales volumes grew 3x YoY to 2.79 lsf (318 units) in Q4FY19, led by strong sales of 1.46 lsf (223 units) at Sunteck Westworld and 1.15 lsf (88 units) at ODC projects, followed by 0.12 lsf (2 units) at BKC projects. Geared response on the activation scheme at ODC helped SRL sell 88 units in Q4FY19. With this, it sold 153 units at ODC in FY19, surpassing its sales guidance of 150 units. Overall, SRL clocked 1.4 msf sales volumes in FY19. New sales bookings grew strongly by 2x YoY to | 1,202.3 crore while collections grew 24.5% YoY to | 660.9 crore in FY19. SRL is confident on...

Sunteck Realty Ltd (SRL) reported strong set of numbers. Standalone results were robust, however consolidated results were below our estimate. Consolidated revenue for the quarter grew 30% YoY and 38% QoQ to Rs 2697mn against our estimate of Rs 3620mn. EBITDA for Q4FY19 came at Rs 888mn (estimate Rs 1270mn) a growth of 4% QoQ and degrowth of 17% YoY. EBITDA margin fell to 33% for the quarter against 44% in QoQ and 52% YoY, mainly due to revenue recognition from Naigaon Project which carries lower margin. PAT for the quarter stood at Rs 634mn which was below our estimate of Rs 830mn, a growth of 3% YoY and 29%...

Sunteck Realty Ltd (SRL) reported strong set of numbers. Standalone results were robust, however consolidated results were below our estimate. Consolidated revenue for the quarter grew 30% YoY and 38% QoQ to Rs 2697mn against our estimate of Rs 3620mn. EBITDA for Q4FY19 came at Rs 888mn (estimate Rs 1270mn) a growth of 4% QoQ and degrowth of 17% YoY. EBITDA margin fell to 33% for the quarter against 44% in QoQ and 52% YoY, mainly due to revenue recognition from Naigaon Project which carries lower margin. PAT for the quarter stood at Rs 634mn which was below our estimate of Rs 830mn, a growth of 3% YoY and 29%...

We recently met the management of Sunteck Realty Ltd. (SRL) to understand the current demand environment prevailing in the real estate market in the wake of election related uncertainty and also to get some grip on the future strategy and growth plans of the company. We have also visited the Naigaon Site of the company to get some on ground information on the current execution pace and schedule of the Sunteck West World Project of the company. Post our management meeting and site visit we reiterate our positive stance on the company and revise our...

We hosted investor meetings with management in Europe and the UK for five days. Catalysts are expected from new project acquisitions and accelerated presales. Investors are positive on Mumbai's property market due to ongoing infrastructure upgrade. Investors believe SRIN is undervalued at a 35% discount to NAV and is a good entry point. They are impressed with the company's high ROE, strong balance sheet and solid growth...

Reiterate BUY with Rs702 TP. We visited SRIN's two ongoing projects Goregaon West (ODC) and Naigaon (Sunteck West World) for latest updates. SRIN has completed structural work for Phase 1 at ODC. The visibility on project completion has helped company to sell 75 units in last one month. Acceleration in...

Affordable Housing Project Driving Sales: SRL recorded a 199% YoY increase in pre-sales to Rs. 3.1 Bn and collections surged 52% YoY to Rs. 1.52 Bn. Pre-sales were primarily driven by the companys affordable housing project at Naigaon which was launched in Q2FY19.

EBITDA margins contracted 240 bps YoY to 41.8% and was below our expectation of 43.5% on account of higher other expenses (9.2% as a % of revenues in Q3FY19 vs. 5.4% in Q3FY18) PAT de-grew by 16.2% YoY to | 49.0 crore and was below our...

To launch one big-ticket project every quarter Sunteck Realty's (SRL) revenues recognised de-grew 48.0% YoY to | 180.3 crore (our estimate: | 202.4 crore) EBITDA margins grew 14.6 percentage points (pp) YoY to 43.3% due to lower margin base in Q2FY18. However, it was way below our expectation of 52.9% on account of higher operating costs (47.4% as percentage of revenues in Q2FY19 vs. our expectation of 39.5%) PAT de-grew 15.0% YoY to | 54.7 crore due to high base in Q2FY18....