CLSA optimistic on Sunteck Realty stock as Dubai and Nepeansea launches near

EditorEmilio Ghigini
Published 11/18/2024, 03:18 PM
SUNT
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On Monday, Sunteck Realty (NS:SUNT) Ltd (SRIN:IN) saw its price target increased by brokerage firm CLSA, from INR553.00 to INR625.00. The firm sustained its Outperform rating on the real estate developer's stock, citing robust presale figures and a positive outlook for future projects.

Sunteck Realty reported a 33% year-over-year increase in presales, reaching Rs5.2 billion, which aligns with the company's forecasted growth of 30%-35% for the fiscal year 2025. The developer has reiterated its commitment to this presales growth target for FY25, as well as its medium-term growth objectives.

The company has announced its launch plans for the fiscal year 2026, which includes three significant projects located at Nepeansea Road, Dubai, and Bandra West. These projects have a combined gross development value (GDV) of Rs80 billion, representing Sunteck Realty's share.

CLSA's decision to raise the price target comes after assessing the improved clarity on the upcoming launches. The launches at Nepeansea Road and Dubai had experienced delays, but with these issues resolved, the brokerage firm has increased its presale estimates for FY26-27.

The revised target price of INR625 from the previous INR553 is a reflection of the confidence in Sunteck Realty's growth trajectory and its ability to maintain the momentum in its presales growth, as highlighted in the company's guidance. The Outperform rating remains in place, suggesting that the firm believes Sunteck Realty's stock will continue to perform well relative to the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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