Sunteck Realty Ltd - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs476, Upside: 18%)

- Sunteck Realty (SRIN) did pre-sales of Rs1.76bn (-53%QoQ/74%YoY) which was driven by 80% contribution from ODC and Naigaon project. Also collected 1.72bn (-46%QoQ/165%YoY) on the back strong execution. The presales to collection ratio further firm up to 98% in Q1FY22 from 76% in Q4FY21.

- SRIN clocked revenue of Rs927mn (-51.5%QoQ/68.7%YoY) and was driven by collections of Rs1.72bn in Q1FY22. Reported EBITDA of Rs206mn (-41.6%QoQ/32.3%YoY) and margin seen uptick of 376bps sequentially to 22.2%. And adjusted profit came in at Rs44mn (-55.6%QoQ).

- We have kept our estimates unchanged while taking the cognizance of SRIN's new dna of fast execution and quick monetization of projects along with aggressive acquisition of new projects in asset light mode, we have reduced the discount given to planned project from 35% to the 25% and valued at Rs30.1bn translating to Rs205/share. Additionally, we have reduced discount on business development from 50% to 40% and hence valued at Rs4.9bn translating in Rs33/share. We have arrived at SoTP based NAV of Rs476/share (previous TP443) considering net cashflows from completed, ongoing, planned projects and expected business development. We maintain 'BUY' rating on stock.

Shares of Sunteck Realty Ltd was last trading in BSE at Rs. 403.5 as compared to the previous close of Rs. 406.9. The total number of shares traded during the day was 102475 in over 4991 trades.

The stock hit an intraday high of Rs. 409.35 and intraday low of 395.7. The net turnover during the day was Rs. 41193155.

Source : Equity Bulls

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