MOTILAL OSWAL INITIATES BUY ON SUNTECK REALTY WITH PRICE TARGET OF RS 530

Sunteck Realty Expands MMR Portfolio with Three New Projects

Sunteck Realty (SRIN) has marked a significant expansion of its Mumbai Metropolitan Region (MMR) portfolio in fiscal year 2026 (FY26), adding three new projects with a combined Gross Development Value (GDV) potential of approximately INR 50 billion. This move comes as the company has invested a notable INR 8.1 billion towards business development in FY26, a substantial increase from the INR 1.8 billion spent in the previous fiscal year (FY25). These new projects are expected to provide additional avenues for growth over the medium term.

Sunteck Realty's launch pipeline currently stands at INR 60-70 billion, encompassing projects in various locations including Andheri, Mira Road, Vasai, and Naigaon. Notably, the Dubai project is launch-ready, with the timing of its launch contingent upon evolving dynamics in West Asia. The anticipated launch in Dubai is expected to provide a significant boost to the company's pre-sales growth.

Valuation and Outlook

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Our research team values Sunteck Realty's residential segment at its Net Asset Value (NAV), implying an embedded Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) multiple of 5.2 times for fiscal year 2028 (FY28E). Meanwhile, the commercial segment is valued at an 8.5% capitalization rate. Based on this analysis, we maintain a BUY rating on the stock with a target price of INR 530, indicating a potential upside of 48% from the current market value.

Note: The table above provides a comparison of the valuation multiples for Sunteck Realty's residential and commercial segments.