Sunteck Realty is a good buy for Target Price of ₹561 (+43% upside)

[Ravi]

Sunteck Realty (SRIN) is on a project acquisition spree with an aim of doubling its GDV every three years, guided by healthy cash flow generation. The company has adopted an asset-light strategy to maintain a lean balance sheet while accelerating execution. Its in-house construction management ensures control over the pace and quality of product delivery. Guided by a strong launch pipeline, the company’s presales are expected to achieve a 24% CAGR over FY25-27E, while its collection and operating cash flow will post a CAGR of 57% and 79%, respectively. We have confidence in SRIN’s growth visibility; hence, we reiterate our BUY rating with a revised TP of INR561/share.