Sunteck Realty Zooms 8% on Robust Sales in Mid-Income Segment

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Jul 13, 2021 - Sunteck Realty Zooms 8% on Robust Sales in Mid-Income Segment

Sunteck Realty Zooms 8% on Robust Sales in Mid-Income Segment

Jul 13, 2021

Mumbai based Sunteck Realty soared 8% to Rs 378.4 in early trade on the BSE today.

The surge was due to the announcement of strong June 2021 quarter update.

Highlights of June 2021 quarter

Sunteck Realty has reported a 74% year on year (YoY) rise in the June 2021 quarter bookings.

The booking amount was Rs 1.7 bn which was led by the performance of the company's mid-income and affordable housing projects.

Sunteck's mid-income project in Oshiwara, Mumbai was sold for Rs 760 m. While another affordable project in Naigaon, Mumbai sold for Rs 650 m.

--- Advertisement ---
The Hidden Opportunity in EV Stocks No One Knows About

With today's fast-changing technology and concern about the environment, the popularity of electric vehicles (EVs) has been on the rise.

Most investors go the usual route of investing in large companies and waiting to rake in profits.

We believe that's not the best approach.

In fact, our research has uncovered a hidden way to make potentially windfall gains from this EV opportunity.

Interested to know more? You can get all details by clicking the link below:

Equitymaster's Latest Research Project - Details

This mid-income segment contributed around 80% to the company's total pre-sales for the June 2021 quarter.

The real estate developer's collections for the quarter grew by 165% YoY to Rs 1.7 bn.

Its collection efficiency also improved to 98% of pre-sales during the June 2021 quarter as against 64% in the same period previous year.

In fiscal 2021, the company had recorded the highest-ever collections of Rs 7.8 bn. It also reported bookings worth Rs 10.2 bn for financial year 2021.

Apart from this, the developer had also acquired three new projects under an asset-light strategy totalling to 8 m sq. ft.

These are in Vasai, Vasind, and Borivali in Mumbai Metropolitan Region (MMR).

Looking forward

Additionally, the company is confident of achieving around Rs 15 bn in presales in fiscal 2022. This will improve its collection efficiency.

Commenting on the performance, Kamal Khetan, Chairman & Managing Director, Sunteck Realty said,

  • In the quarter gone by, we continued our strong momentum in operational performance.

    Both pre-sales and collections witnessed sturdy growth along with high collections efficiency.

    The industry consolidation is leading to a rise in the share of business for organized developers and Sunteck will be one the biggest beneficiaries of this trend.
    We increase our presale estimates by 12% for the financial year 2022. While we increase the estimates to 9% for the financial year 2023.

    We like the stock being on the ramp-up for its mid-income and affordable housing portfolio.

The company's core strength of sales and marketing and in-house construction capabilities helps it to sustain the robust pre-sales and collections trends.

FREE Event: Discover Your First Stock for a Potential Rs 7 Crore in Long-term Wealth

Apart from these factors, the company is also among the key beneficiaries of the ongoing consolidation in the real estate sector.

Listed companies in this segment are expected to gain market share from smaller and regional players who are struggling to meet their working capital requirements.

Equitymaster's technical view on the realty sector

We reached out to Brijesh Bhatia, Research Analyst at Equitymaster, and editor of the premium monthly recommendation service Fast Profits Report, for his technical view on the realty sector.

Here's what he has to say...

  • First metals, then cement, and now the realty is breaking out of multi-year bearish trends, indicating the frequent sector rotations in this bull market.

    With the lower interest rates on loans and revised ticket size in real estate investment trust's (REIT) investment, the liquidity is likely to flow into this sector.

    Realty index has broken out of the decade old range of 140-350 to build the skyscraper on charts, the price rally.

    On the short-term (daily) chart, the index has broken out of the cup and handle pattern which confirms the bullish breakout.

    We expect the breakout to play well and expect a fast and furious rally like metals and cement.

    Realty index is underperforming against Nifty since 2008 and Nifty trading at all-time high, possess a risk for realty index.

    The bullish structure might negate if the index moves back below 300 and trades in the decade range.

For more detailed updates, you can check the latest real estate / construction sector results.

--- Advertisement ---
What CNBC Won't Tell You...

The next 10 years would be a golden period for Indian investors...

The "Big Bull" Rakesh Jhunjhunwala claims it could be one of the largest stock market bull runs in India ever...

And veteran investor Raamdeo Agarwal says the S&P BSE Sensex could even reach 200,000 points in the next 10 years... All thanks to these...

Highly Powerful Wealth-Building Mega-Trends

How the market reacted to Sunteck Realty's performance

Sunteck Realty opened at Rs 363.5 on the NSE against its previous close of Rs 349.4.

The price then soared up by 8.4% to Rs 379.2 in early trade.

On the BSE the stock opened at Rs 367.5 and zoomed by 8.5% to Rs 378.4.

However, shares of the company erased gains as the session progressed and closed at Rs 358.7 on the BSE.

On the NSE the stock closed at Rs 358.9.

The S&P BSE realty index ended at 3,033 (up 0.5%).

Within the realty sector, the top gainers today were Mahindra Lifespace (up 4.6%) and Sunteck Realty (up 2.4%). On the other hand, Indiabulls Real Estate (down 2.3%) and Sobha (down 0.6%) were among the top losers.

Over the past one year, shares of Sunteck Realty have gained 85.7%.

About Sunteck Realty

Sunteck Realty is a Mumbai-based real estate and construction company.

It's engaged in construction, development, and management of commercial and residential properties.

The company is known for its high-end residential properties which are classified under different brand names: Signature for ultra-luxury properties, Signia for luxury properties and City for mid-segment properties.

The company was set up by Kamal Khetan in 1981. In March 2009, it entered into a partnership with Oman based WJ Towell Group and Piramal Group.

It also formed a 51:49 joint venture in 2009 with Bank of Muscat for developing real estate projects in Oman.

The company has been listed as a Fortune Next 500 company for the year 2017, 2018, 2019, and 2020.

For more details about the company, you can have a look at Sunteck Realty's fact sheet and Sunteck Realty's quarterly results on our website.

You can also compare Sunteck Realty with its peers on our website:

Sunteck Realty vs DLF

Sunteck Realty vs Godrej Properties

Sunteck Realty vs Eldeco Housing

Sunteck Realty vs Emami Realty

Sunteck Realty vs Ahluwalia Contracts

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "Sunteck Realty Zooms 8% on Robust Sales in Mid-Income Segment". Click here!


More Views on News

SUNTECK REALTY 2020-21 Annual Report Analysis (Annual Result Update)

Oct 22, 2021 | Updated on Oct 22, 2021

Here's an analysis of the annual report of SUNTECK REALTY for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of SUNTECK REALTY. Also includes updates on the valuation of SUNTECK REALTY.

SUNTECK REALTY Announces Quarterly Results (1QFY22); Net Profit Up 269.1% (Quarterly Result Update)

Aug 3, 2021 | Updated on Aug 3, 2021

For the quarter ended June 2021, SUNTECK REALTY has posted a net profit of Rs 44 m (up 269.1% YoY). Sales on the other hand came in at Rs 927 m (up 68.7% YoY). Read on for a complete analysis of SUNTECK REALTY's quarterly results.

A REIT Way to Generate Regular Income (Views On News)

Oct 26, 2021

REITs are an investment opportunity worth considering for anyone looking to generate regular income from their investments.

Realty Stocks on a Roll. Oberoi, Sobha, & Prestige Estates Surge (Views On News)

Aug 2, 2021

Realty stocks are racing ahead on increased demand for housing on top of low interest rates.

The New Winners in the Real Estate Sector (Views On News)

Jul 16, 2021

Realty stocks are seeing an upmove after years as prominent players gain market share.

More Views on News

Most Popular

The Reality of Indian Real Estate

There are certain things about property / real estate that you must understand...things that could make you a lot smarter in ...

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 3, 2021 (Close)


  • Track your investment in SUNTECK REALTY with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks