Motilal Oswal initiates India's Sunteck Realty with "buy", shares jump

Sunteck Realty

21/11/2023 07:14

** Motilal Oswal initiates coverage of Sunteck Realty
 SUNT.NS  with "buy" rating and PT at 640 rupees
    ** The PT represents a 41% premium to stock's last close
    ** Co's shares rise 5.6% to 479 rupees, last up ~3.25%
    ** Expect co to deliver 25% pre-sales CAGR over FY23-26,
fueled by more launches in new and existing projects, brokerage
says
    ** Co's multi-micro-market presence, luxury offerings across
price points have made it one of the biggest beneficiaries of
the strong demand, it adds
    ** SUNT generated an operating surplus of 9.5 bln rupees
($114.1 mln) over FY21-23, which helped reduce the net debt to
2.5 bln rupees, leaving a lot of headroom for growth - Motilal
    ** Brokerage estimates a cumulative net operating surplus of
16 bln rupees over FY24-26
    ** Avg rating of 8 analysts close to equivalent of "strong
buy", median PT is 560 rupees - LSEG data

($1 = 83.2440 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))