Jefferies sees 23% upside in Sunteck Realty; stock hits 52-week high

Shares of Sunteck Realty, a Mumbai-based real estate and construction company, gained as much as seven per cent to hit a 52-week high of Rs 482 apiece on Wednesday, October 11. The rally in the stock came after global brokerage Jefferies raised its target on the stock, seeing an upside of 23.2 per cent from Tuesday's closing price.

At around 1:10 p.m., shares of Sunteck Realty were trading at Rs 470.2 apiece, up 4.35 per cent on BSE. The stock continued Tuesday's rally and gained over 9 per cent. The market capitalisation of the stock stood at Rs 6,887.43 crore. The stock closed 4.45 per cent higher at Rs 470.65 apiece.

Jefferies has maintained a 'buy' call on Sunteck Realty and has raised the target price to Rs 555 apiece from Rs 415 apiece.

The brokerage is bullish on the company's improved growth and governance prospects. It also believes that the real estate company will benefit from the government's move to renew its push for affordable housing, as Sunteck’s 75 per cent of portfolio is geared to this segment.

Sunteck Realty Q1 performance

Sunteck Realty reported a net consolidated loss of Rs 6.73 crore during the quarter ended June 30, 2023. The company's net consolidated total income stood at Rs 88.41 crore in Q1 FY24, down 40.55 per cent from Rs 148.71 crore last year.

The company said that during the quarter, pre-sales grew by 16 per cent year-on-year (YoY) to Rs 387 crore, while collections remained'strong' at Rs 288 crore. Its core earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin stood at 43 per cent.

The company's net debt reached Rs 264 crore, while the net debt-equity ratio stood at 0.09 times.

Sunteck Realty share price: Past performance 

In 2023 so far, Sunteck Realty's stock has gained over 35 per cent, outperforming the headline index's rise of over 8 per cent. 

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