Buy Sunteck Realty, target price Rs 740: Emkay Global

Emkay Global has buy call on Sunteck Realty with a target price of Rs 740. The current market price of Sunteck Realty Ltd. is Rs 479.4. Time period given by analyst is one year when Sunteck Realty Ltd. price can reach defined target.

Sunteck Realty Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 7030.60 Crore) operating in Real Estate sector.

Sunteck Realty Ltd. key Products/Revenue Segments include Income from Sale of Commercial Flats, Shops & Plots, Sale of services, Other Operating Revenue, Rent and Project Management Fees for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 142.41 Crore, up 48.17 % from last quarter Total Income of Rs 96.12 Crore and down -3.81 % from last year same quarter Total Income of Rs 148.05 Crore. Company reported net profit after tax of Rs 16.87 Crore in latest quarter.


Investment Rationale
The brokerage believes that Sunteck is set to reap the benefits of its strategically-located, high-value land acquisitions (>20msf of JDAs signed in the last 12-18 months). It forecasts sales to double over FY22E-FY24E. It reiterates Buy with a Dec’22 TP of Rs740.

Promoter/FII Holdings
Promoters held 67.15 per cent stake in the company as of 30-Jun-2021, while FIIs owned 21.28 per cent, DIIs 4.0 per cent.