Sunteck Realty Shares Surge 5% Amid Positive Market Outlook

Sunteck Realty Shares Surge 5% Amid Positive Market Outlook

VoM News Desk | November 21, 2023 | 11:21 AM IST | Breaking News | Follow on Google News

Sunteck Realty Shares Surge 5% Amid Positive Market Outlook

Sunteck Realty Shares Surge 5% Amid Positive Market Outlook

In Tuesday’s morning trade on the BSE, Sunteck Realty’s share price saw a significant jump of over 5 percent. Opening at ₹474 against the previous close of ₹453.70, the stock escalated to an intraday high of ₹478.50, marking a notable rise in investor interest.

Sunteck Realty has had a strong performance this year, with its share price gaining almost 38 percent, significantly outperforming the 8 percent gain in the equity benchmark Sensex. This growth highlights the company’s robust position in the real estate market.

Brokerage Firm’s Buy Recommendation

Motilal Oswal Financial Services has initiated coverage on Sunteck Realty with a ‘buy’ recommendation, setting a target price of ₹640. This target suggests a substantial 41 percent upside from the stock’s closing price on November 20. The brokerage firm anticipates healthy growth for Sunteck Realty based on its strong project pipeline and market position.

Motilal Oswal expects Sunteck Realty to achieve a 25 percent pre-sales Compound Annual Growth Rate (CAGR) over FY23-26, driven by new launches and existing projects. The firm also forecasts a significant increase in revenue and Profit After Tax (PAT), driven by projects in Naigaon and Goregaon. The valuation incorporates the residential segment based on the Net Present Value (NPV) of existing pipelines and the commercial segment based on an 8 percent capitalization rate on FY25E EBITDA.

Future Growth and Potential Risks

Sunteck Realty is gearing up for further growth with new project launches in Kalyan and Nepean Sea Road, planning launches worth ₹5,700 crore in the coming years. However, Motilal Oswal cautions that delays in new project launches and subdued sales could pose risks to the projected growth trajectory.

VoM News Desk

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