Small Cap Real Estate Stock Trading 9.06% Up From 52-Week Low, "Buy" For 70% Gains: ICICI Securities

Leading brokerage firm ICICI Securities has initiated coverage on Sunteck Realty with a "Buy". The brokerage estimated a target price of Rs 590 apiece on the stock of Sunteck Realty, which implies a potential upside of up to 70% from its current level. This is a small-cap stock that operates in the Real Estate Sector. It has a market valuation of Rs Rs 5,154.80 crore. Below are the key takeaways from the report:

Sunteck Realty Ltd Stock Performance & Outlook

The stock of Sunteck Realty is currently trading at Rs 343.55 apiece, down 1.41% from the previous close of Rs 348.45 apiece. The stock today opened at Rs 350.20 apiece. It hit the new 52 week low on 23 December 2022 at Rs 315 apiece on NSE. While it touched the 52 week high on 4 February 2022 at Rs 545 apiece. It has given a 2.11% positive return in the past 1 week and 2.07% positive return in the past 1 month. However, in the past 1 year, it declared 10.07%. In 3 years it declined 33.45%%. In the past 5 years, it declined 13.79%.

ICICI Securities maintains "Buy" With Rs 590/share target price

Sunteck Realty (SRIN) clocked healthy Q3FY23 sales bookings of Rs4.0bn (I-sec estimate of Rs3.5bn) driven by the ODC, Goregaon (Rs1.9bn) project and Sunteck Beach Residences (Rs1.1bn) in the extended western suburb of Vasai during the quarter. The company had given a formal guidance of Rs18.0bn of FY23 sales bookings and with 9MFY23 sales bookings of Rs10.7bn, it is looking to achieve Q4FY23 sales bookings of ~Rs7.0bn through the launch of its Kalyan or Mira Road project in Q4FY23 which may contribute Rs3-4bn of sales bookings in addition to current quarterly run rate of Rs3-4bn. In the medium term, the company has planned launches of 7.5msf over Q4FY23-FY24 having GDV of over Rs60bn and is targeting FY24 sales bookings of ~Rs25bn. "We maintain our BUY rating on SRIN with an unchanged target price of Rs590/share based on 1x FY23 NAV. Key risks are slowdown in the Mumbai property market and fall in residential prices," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.