By Aditya Raghunath
Investing.com -- Most realty stocks have seen their share prices move up in the last few months. For instance, Brigade Enterprises Ltd (NS: BRIG ) has moved up 60% in 2021. Oberoi Realty Ltd (NS: OEBO ) has gained 34% while Macrotech Developers Ltd (BO: MACE ) (Lodha Group) has gained 124%.
However, there is one Mumbai-based realty company which has lagged all its peers. Sunteck Realty Ltd (NS: SUNT ) closed September 7 at Rs 380.3, a gain of a little over 7% this year.
However, ICICI Securities feels that the tide might turn for the company in the remainder of this financial year. The brokerage said, “Sunteck Realty’s (SRIN) has launched Phase 1 of its affordable housing project in Vasind, located in Mumbai Metropolitan Region’s (MMR) extended eastern suburbs. The project which was acquired under the asset light JDA model in FY21 has a total saleable area of 2.6msf in which SRIN has 80% revenue share. We estimate revenue of Rs2.7bn for Phase 1 of the project (1,000 units launched) and the overall project to have revenue potential of Rs12-13bn with pre-tax operating surplus of over Rs 5 bn and NAV accretion of Rs2.8bn (Rs20/share). We maintain our BUY rating on SRIN with a revised target price of Rs 475/share (earlier Rs 457) based on 1x NAV adjusting for project level adjustments.”
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