Buy Sunteck Realty; target of Rs 415: Motilal Oswal

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Sunteck Realty's pre-sales growth is driven by sustenance sales, with a strong launch pipeline ahead, including projects like Sunteck Belvedere Park and Andheri, expected to boost pre-sales in FY27.
  • The company's recent land acquisition in Borivali West, taking its total landholding in the micro-market to 11.5 acres, with a total estimated combined GDV of INR80b, is expected to support growth over the medium term.
  • Growth in collections and healthy cash flows are expected to support business development while keeping leverage at healthy levels in the coming years.
  • The company's focus on expansion, with a continued investment in business development, is expected to drive future growth.

Thesis Validation Checklist

  • Over the next 12 months, investors should watch for the company's ability to achieve its 25% pre-sales growth guidance, with key launches in 2HFY27, including Sunteck Belvedere Park and Andheri.
  • The company's ability to maintain a healthy balance sheet, with net debt-to-equity remaining low, and collections growing at a 23% CAGR over FY26-28, will be crucial.
  • The progress of the Dubai project, which is launch-ready but has an uncertain timeline due to the macroeconomic environment, will also be important to monitor.
  • Any changes in the company's strategy or management commentary on future growth prospects should also be closely watched.