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.
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.
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).
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,
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.
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.
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...
For more detailed updates, you can check the latest real estate / construction sector results.
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%.
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 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...
Yash Vora is a financial writer with the Microcap Millionaires team at Equitymaster. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
Equitymaster requests your view! Post a comment on "Sunteck Realty Zooms 8% on Robust Sales in Mid-Income Segment". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!