Hold Sunteck Realty; target of Rs 490: ICICI Direct
ICICI Direct’s research report on Sunteck Realty
Sunteck Realty (SRL) clocked sales volume growth of 93% YoY to 1.63 lsf (198 units) in Q1FY20. It achieved pre-sales worth Rs 185.8 crore (2.3% growth YoY) while collections grew 17.5% YoY to Rs 189.2 crore in Q1FY20. On the financials front, revenues recognised de-grew 17.4% YoY to Rs 174.6 crore (our estimate: Rs 158.5 crore). EBITDA margins expanded 200 bps QoQ to 34.9%. PAT de-grew 55.2% YoY to Rs 33.2 crore on account of topline de-growth and sharp contraction in EBITDA margin.
We would like to see the sales momentum panning out at its key residential projects at ODC and BKC in the current environment. Hence, we maintain our HOLD rating on the stock with a TP of Rs 490/share (1x FY20E NAV).
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