Jefferies hikes Sunteck Realty target post stellar Q2 show, sees over 40% potential upside
Sunteck Realty’s Q2FY25 net profit jumped 348 percent YoY to Rs 35 crore.
Shares of Sunteck Realty are expected to be in focus on November 14 after the company reported exceptional results for the July-September quarter (Q2FY25). Sunteck’s revenue surged over six times year-on-year (YoY), while net profit saw an impressive four-fold increase over the same period last year.
In response, Jefferies reaffirmed its “buy” rating for the stock and raised the target price from Rs 690 to Rs 700 per share. The brokerage firm attributes its optimism to Sunteck’s strong sales momentum and solid balance sheet, which it believes will support long-term growth. Additionally, the stock currently trades at an attractive 11x projected FY25 PAT, with potential for a re-rating spurred by large project launches.
Sunteck Realty’s Q2FY25 net profit jumped 348 percent YoY to Rs 35 crore, while revenue grew by 578 percent YoY to Rs 169 crore. Pre-sales were also robust, rising nearly 33 percent to Rs 524 crore, and collections climbed by almost 25 percent to Rs 267 crore.
The company has a diverse city-centric development portfolio spanning 52.5 million sq ft across 32 projects, including major projects in Mumbai’s Nepean Sea Road, Bandstand in Bandra, and an international project in Dubai’s Burj Khalifa district.
Despite these strong fundamentals, Sunteck Realty’s stock has declined over 14 percent in the past three months, underperforming the Nifty 50, which fell just 2 percent. Nonetheless, all 11 brokerages covering Sunteck Realty maintain a strong “buy” recommendation.
Bymoneycontrol
