Motilal Oswal Recommends 'Buy' On Sunteck Realty With 43% Upside Potential Citing Strong Growth Prospects

Motilal Oswal has issued a “Buy” rating on Sunteck Realty, setting a target price of Rs 561—indicating a potential upside of 43% from its current market price of Rs 393.

Sunteck Realty is one of the leading real estate developers in MMR, with a diverse presence across the South and Central, Western, and Eastern suburbs. (Photo source: Company website)

Sunteck Realty is on a project acquisition spree with an aim of doubling its gross development value every three years, guided by healthy cash flow generation. The company has adopted an asset-light strategy to maintain a lean balance sheet while accelerating execution.

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Motilal Oswal Report

We expect Sunteck Realty Ltd. to deliver a healthy 24% presales CAGR over FY25-27E, fueled by a ramp-up in launches from both new and existing projects. Further, its sound balance sheet and strong cash flows would spur project additions and drive sustainable growth.

We value its residential segment based on the net present value of existing pipelines and its commercial segment based on an 8% cap rate on FY26E Ebitda.

We reiterate our Buy rating on the stock with a revised target price of Rs 561, implying a 43% upside potential.

Click on the attachment to read the full report:

Motilal Oswal Sunteck Realty Company Update.pdf
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Also Read: Dixon Technologies Can Rally 33%, Says Motilal Oswal Maintaining 'Buy' — Check Target Price

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