Sunteck Realty Ltd. shares rose by 3% from their lowest point on Friday, August 22. The stock has seen gains for four straight trading days.
Motilal Oswal, a brokerage firm, kept its ‘Buy’ rating on Sunteck Realty. They noted the company’s strong growth outlook. The firm also raised its price target to ₹561 per share. This suggests a potential 43% increase from Thursday’s closing price.
Motilal Oswal believes Sunteck Realty is actively acquiring new projects. Their goal is to double their Gross Development Value (GDV) every three years. This plan is supported by healthy cash flow.
The company has secured 11 projects so far. Their total GDV is ₹39,800 crore. In fiscal years 2021-2024, Sunteck launched six projects worth ₹26,600 crore. This resulted in a 23% annual growth in pre-sales.
For fiscal year 2025, Sunteck Realty reported ₹2,530 crore in pre-sales. This marks a 32% year-over-year increase. The first quarter of fiscal year 2026 also saw 31% year-over-year pre-sales growth. This was driven by strong sales from luxury and premium projects.
Sunteck Realty aims to launch projects worth ₹11,000 crore in GDV from the second to fourth quarters of fiscal year 2026.
The company uses an asset-light strategy. This helps keep its balance sheet strong while speeding up project completion. Their in-house construction management ensures control over project timing and quality.
With a solid pipeline of new projects, Motilal Oswal predicts Sunteck’s pre-sales will grow by 24% annually from fiscal 2025 to 2027. Their collections and operating cash flow are expected to grow even faster. Collections should rise by 57% annually. Operating cash flow should increase by 79% annually.
A strong balance sheet and cash flow will help the company add more projects. This should lead to steady growth.