Shares of Sunteck Realty surged more than 7 percent on October 15 after the real estate major posted a healthy Q2FY25 performance, clocking Rs 520 crore in pre-sales, up 33 percent on-year as demand momentum continued in the Mumbai Metropolitan Region (MMR) market.
The company's collections during the quarter surged 25 percent YoY to Rs 270 crore. Since the onset of the pandemic, Sunteck Realty has added seven projects (Vasai, Vasind, Borivali, Kalyan, Pen-Khopoli, Mira Road, and Dubai) aggregating ~26.5msf, leveraging the asset-light model.
According to analysts at Nuvama, launches are critical to boosting the sales momentum, going ahead. The company’s launches in FY24 have seen healthy traction.
"We reckon the upcoming phase launch in Sunteck World, Naigaon, a new tower in Sunteck Sky Park Mira Road, a new phase in ODC, 5th Avenue and one or two new towers each in Sunteck Beach Residencies, Vasai and Sunteck Crescent Park, Kalyan with a cumulative GDV of Rs 5,000 crore shall boost the sales trajectory," the brokerage said.
Analysts at Nuvama believe that Sunteck's focus on cash flow management would help keep its balance sheet healthy. "SRL’s focus on cash flow and low gearing should hold it in good stead. We anticipate a higher sales trajectory for SRL with the housing cycle turning, sustained expansion of project portfolio, and release of inventory in existing projects," they said.
For SRL, investor focus has shifted towards launches from project additions, said Nuvama as it maintained a 'buy rating on the stock with a revised target price of Rs 702 from Rs 690 earlier.
At 9:45 am, Sunteck Realty shares were trading 7.5 percent higher at Rs 596.15 on the National Stock Exchange (NSE). So far this year, the stock has rallied 33 percent, outperforming Nifty's returns of 15 percent.
In the last year, the counter has risen around 26 percent compared to Nifty's gain of 27 percent during this period.
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