Sunteck Realty's shares jumped over 7% following a strong Q2FY25 performance. The company's pre-sales surged by 33% year-on-year (YoY), reaching ₹520 crore, driven by sustained demand in the Mumbai Metropolitan Region (MMR). The company’s collections also rose by 25% YoY to ₹270 crore, highlighting solid business momentum.
Sunteck Realty’s Q2 highlights
Sunteck Realty delivered an impressive performance in Q2FY25, which resulted in a 7% spike in its stock price. The 33% YoY growth in pre-sales, amounting to ₹520 crore, indicates strong demand for real estate in the MMR. This growth showcases Sunteck's ability to capture market demand and maintain investor confidence, making it an attractive stock for those looking to invest in stocks.
Collections during the quarter surged by 25% YoY to ₹270 crore, reinforcing the company’s solid cash flow position. The asset-light model, which involves partnerships with landowners and developers, has been instrumental in this success.
Expansion through key project launches
According to analysts, Sunteck Realty’s continued project launches are essential for its growth trajectory. In FY24, the company’s project launches, particularly in key areas like Sunteck World, Naigaon, and Sunteck Sky Park Mira Road, have seen robust demand. These upcoming developments, with an estimated gross development value of ₹5,000 crore, are expected to boost sales momentum further, making Sunteck an attractive option for those looking to invest in stocks.
The company’s expansion into Tier-II cities like Vasai, Kalyan, and Pen-Khopoli also highlights its growth strategy. This diverse project portfolio offers potential long-term gains for investors who choose to invest in stocks within the real estate sector.
Analysts’ positive outlook for Sunteck Realty
Analysts have highlighted Sunteck Realty’s focus on cash flow management and its low gearing as major factors in keeping its balance sheet healthy. With a renewed ‘buy’ rating and a revised target price of ₹702, Sunteck Realty continues to be a top pick for those looking to invest in stocks.
The real estate sector's ongoing housing cycle expansion, combined with the company’s steady project portfolio growth, has contributed to the stock’s strong performance this year. So far in 2024, Sunteck Realty’s stock has rallied by 33%, significantly outperforming the Nifty’s 15% return. For investors interested in growth opportunities, Sunteck Realty presents a promising chance to invest in stocks.
Invest safely
Sunteck Realty’s robust Q2FY25 performance has pushed its stock up by 7%, and with a strong outlook for future growth, it continues to be an attractive option for investors. As the company focuses on project launches, strong cash flow management, and expanding its portfolio, those looking to invest in stocks should consider Sunteck Realty as a potentially rewarding option.
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