Synopsis: Sunteck Realty is in focus after Prabhudas Liladhar assigned a staggering upside of 38 percent, citing its strong ability to acquire land across key Mumbai micro-markets, and its ongoing project pipeline, including the Dubai JV, supports growth.
The shares of this leading Mumbai-based real estate developer are in focus after a leading brokerage assigned a significant upside to the stock. In this article, we will dive deeper into what could be the rationale behind this significant upside.
With a market capitalization of Rs 6,372 crore, the shares of Sunteck Realty Ltd reached a day’s high of Rs 437.50 per share, up 0.63 percent from its previous day’s closing price of Rs 434.75 per share. Over the past five years, the stock has delivered a return of 63 percent, underperforming NIFTY 50’s return of 122 percent.
Analyst Comments
Leading brokerage house, Prabhudas Liladhar Capital, has assigned a Buy rating on the stock and has set a target price of Rs 600 per share, signaling an upside potential of 38 percent from its previous day’s closing price of Rs 434.75 per share.
The brokerage cited that Sunteck Realty reported strong pre-sales (+34 percent YoY) and collections (+24 percent YoY) in Q2, supported by Nepean Sea Road and Mira Road projects. Super-luxury projects (like 3 BKC and Nepean Sea) made up about 40 percent of pre-sales, whereas high mid-income projects accounted for 47 percent. The 4th Avenue ODC project revenue led to a Q2 revenue increase of 49 percent YoY, with PAT going up to Rs 490 crore.
On the other side, EBITDA getting to Rs 77.8 crore was a notable jump, accompanied by the margin widening to 30.8 percent from 22.1 percent last year. The collections efficiency is still going strong at 80 percent, thus the cash flow is healthy, even though net debt has increased slightly to Rs 126 crore.
Through H1 FY26, the company is heavily into business development and is spending Rs 430 crore to add new projects in Andheri and Mira Road. The management’s target of doubling GDV in 3–4 years is mainly a result of continuous land acquisitions and upcoming launches.
New project launches are expected to lead the way with the 5th Avenue (ODC), towers in Vasai, Naigaon, Andheri redevelopment, luxury Nepean Sea Road projects under the “Emaance” brand, and a Dubai JV. The Nepean Sea Road official launch is anticipated in Q4FY26, and pre-sales growth guidance of 30–35 percent YoY is being repeated.
In summary, Sunteck is a major player in the high-value real estate market of Mumbai with its strong pre-sales, good cash flows, and pipeline of ultra-luxury projects
Written by Satyajeet Mukherjee
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