Suraj Estates — A Distinct Play, For Choice Of Micro-Markets, Products, Says Anand Rathi On 'Buy' Initiation

Its choice of micro-markets and differentiated products make Suraj Estate stand out. On its long-standing operations (over 38 years’ delivery) in south-central Mumbai (high barriers to entry, paucity of land parcels), cost and time effective redevelopment model, keen focus on the value-luxury category (conforming to demographics) and select luxury developments, it has emerged as a real estate supplier of choice in its chosen markets. On its strong project pipeline with a much-anticipated launch of key projects like Suraj Vibe (Mahim, commercial) and Bandra luxury projects, it will further strengthen its leading position.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Well established in south-central Mumbai with expertise in re-development of tenanted properties, the company is set benefit from the paucity of vacant land in SCM. Further, on its right-product positioning, a strong pipeline and leading Ebitda margins, premium valuations are expected for the company due to the growth potential and strong management.

We initiate coverage on the stock with a Buy rating and a target price of Rs 442, based on discounted cash flow methodology. At current market price of Rs 314, we understand stock is mispriced taking into consideration the bear case target price of Rs 372/share where launches of marquee projects are delayed.

Key risks

Delay in the Suraj Vibe and Bandra project launches and delivery; Geographical concentration in SCM; Regulatory changes; Cyclical nature of the Industry

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.