Broker's call: Sunteck Realty (Buy)

| Updated on February 18, 2021 Published on February 18, 2021

Emkay Global

Sunteck Realty (Buy)

Target: ₹412

CMP: ₹360

Sunteck Realty’s Q3 FY21 performance was marked by yet another strong show in its pre-sales booking, up 7 per cent y-o-y to ₹349 crore. Collections jumped 53 per cent y-o-y. Reported financials, however, were not comparable due to a change in accounting even as the operational performance was strong.

The strong pre-sales were driven by the launch of new inventory at the ODC Goregaon project and continued strength in its Naigaon projects. Some of the ready-to-move-in inventory such as Signia High, Gilbird Hill and Signia Waterfront also witnessed reasonable traction during the quarter.

Strong collections helped Sunteck bring down Net D/E ratio to 0.24x D/E, one of the best in the industry even as the company continues to expand through the asset-light JV/JDA route. It also keeps options open for outright land purchase in case a good opportunity arises.

We raise estimates modestly by 1-2 per cent (sticking to previous accounting for now), while our NAV goes up to ₹412/share (from ₹393 earlier) on better pre-sales and roll-over to March 23.

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Published on February 18, 2021
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