This real estate stock has jumped 30% in 8 sessions; hit record high today

Sunteck Realty share price: Shares of Sunteck Realty extended their rally into the eighth trading session on Tuesday, July 16, as they jumped 15 per cent to Rs 698.35 per share on the BSE in the intraday trade. This was also Sunteck's stock fresh record high.

Including today's gains, Sunteck Realty stock has zoomed 29.5 per cent since July 5 on the BSE. By comparison, the benchmark BSE Sensex has added 1.1 per cent during the period. At 1:13 PM, however, Sunteck Realty share price was trading 5.1 per cent higher at Rs 638.5 per share as against the Sensex's 0.22 per cent rise.

On July 12, Sunteck Realty informed the stock exchanges that the real estate company's pre-sales during the April-June quarter (Q1) of the current financial year (FY25) stood at Rs 502 crore, registering a growth of 29.7 per cent on a year-on-year (Y-o-Y) basis.

During the corresponding quarter of the previous fiscal (Q1FY24), Sunteck Realty's pre-sales were Rs 387 crore. The pre-sales, however, were lower than December quarter's pre-sales of Rs 678 crore.

Sunteck Realty's Q1FY25 collections, meanwhile, increased 18.8 per cent Y-o-Y to Rs 342 crore, up from Rs 288 crore seen in Q1FY24. In the December quarter, collections stood at Rs 296 crore.

Sunteck Realty Limited (SRL) is one of the fastest growing real estate development companies with a focus on city-centric development, spread-out across the Mumbai Metropolitan Region (MMR). The company's business focuses on designing, developing, and managing premium residential and commercial properties.

The notable residential projects of Sunteck Realty include Signature Island, and Residential Complex. Moreover, the commercial projects of the company include Sunteck Centre, and Sunteck Grandeur. Their developmental activities cover the major metros and mini metros of India including Mumbai, Nagpur, and Goa.

Thus far in calendar year 2024, Sunteck Realty share price has advanced 36.4 per cent on the BSE as against around 12 per cent rally in the benchmark index. The stock hit a 52-week low of Rs 347.65 per share on July 26, 2023.

Sunteck Realty has a market-capitalisation of Rs 9,302 crore, and trades at a P/E of 171.69x.

Sunteck Realty FY25 outlook

Sunteck Realty ihas guided for pre-sales growth of 20-25 per cent Y-o-Y for FY2025. In FY24, Sunteck Realty had clocked its highest-ever pre-sales of Rs 1,915 crore.

It has a strong launch pipeline of Rs 7,000 crore (including Rs 2,500 crore for the Napean Sea road project, which is slated for launch in H2FY25), which, analysts at Sharekhan believe, would help it achieve its pre-sales growth guidance. It also targets sales of 6-8 units per annum in its BKC projects per annum which is likely to generate Rs 150-200 crore of free cash flows per annum.

It targets to sell balance units of BKC projects having Rs 1,300-1,400 crore revenue potential over a four-year period.

"Sunteck Realty has a robust and sustainable growth potential in the near to long term, with solid foundations built across key regions and income groups in the lucrative MMR market. It remains committed to expediting sales at the ready assets at Bandra-Kurla Complex. The company has two major project launches during FY2025 which, along with healthy sustenance sales from existing projects, should aid in driving sales booking growth," Sharekhan said.

Sunteck Realty stock, it said, is currently trading at a P/B multiple of 1.8x/1.7x on FY2025E/FY2026E and offers a buying opportunity. "Hence, we retain our 'Positive' view owing to its strong growth outlook over the medium to long term," the brokerage said.

Sunteck Realty Financial Performance

While the company is yet to announces its Q1FY25 result announcement date, in Q4FY24, Sunteck Realty reported a net profit of Rs 101.3 crore as against a net loss of Rs 27.9 crore Y-o-Y.

The company's revenue from operations vaulted 773.01 per cent to Rs 426.9 crore from Rs 48.9 crore in Q4FY23. Sunteck Realty's Q4FY24 Ebitda was Rs 153.4 crore versus Rs 9.1-crore loss in the previous fiscal.

Ebitda margin was 35.9 per cent in the reporting quarter.