This small-cap stock engaged in real estate development, specializing in residential and commercial projects in prime locations across South-Central Mumbai, with a focus on luxury and redevelopment, is in focus after Anand Rathi gave a buy target price of Rs. 442, which has an upside potential of 38.86 percent.
Stock Price Movement
With a market capitalization of Rs. 1,538.30 crore, the shares of Suraj Estate Developers Limited were currently trading at Rs. 322 per equity share, up nearly 1.13 percent from its previous day’s close price of Rs. 318.40.
Company Overview
Suraj Estate Developers Limited was incorporated in 1986 and is a Mumbai-based real estate leader specializing in residential and commercial redevelopment projects across South Central Mumbai. The company focuses on luxury and value-luxury segments, leveraging third-party contractors for construction.
Target
Anand Rathi, a prominent brokerage firm, has recommended a “Buy” call on Suraj Estate Developers Limited with a target price of Rs. 442 per share, indicating an upside potential of 38.86 percent from today’s low of Rs. 318.30.
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Rationale
Anand Rathi’s target for Suraj Estate Developers Limited reflects the company’s strong market position in south-central Mumbai, with over 38 years of expertise. Its strategic focus on high-demand micro-markets, cost-effective redevelopment models, and luxury projects like Suraj Vibe and Bandra developments positions it for continued growth and leadership in the real estate sector.
Guidance
Suraj Estate Developers has adjusted its FY25 pre-sales guidance to Rs 500-525 crore, reflecting a cautious yet optimistic outlook. The company maintains a positive outlook for FY26 and FY27, driven by strong demand in the high-end real estate segment.
Business Operations
Suraj Estate is a leading real estate developer in South-Central Mumbai, with over 38 years of experience. The company has completed 42 projects across residential and commercial sectors, totaling over 1 million square feet in prime locations. Currently, Suraj Estate has 13 ongoing projects and 18 upcoming projects, further strengthening its market presence.
Recent quarter results and ratios
Suraj Estate Developers Limited’s revenue has increased from Rs. 106 crore in Q3 FY24 to Rs. 170 crore in Q3 FY25, which has grown by 60.38 percent. The net profit has also grown by 17.65 percent, from Rs. 17 crore in Q3 FY24 to Rs. 20 crore in Q3 FY25.
Suraj Estate Developers Limited’s revenue and net profit have grown at a CAGR of 63.74 percent and 101.84 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE should be 28.7 percent and 23 percent, respectively. Suraj Estate Developers Limited has an earnings per share (EPS) of Rs. 22.5, and its debt-to-equity ratio is 0.79x.
Written By – Nikhil Naik
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