Sunteck Realty Q2 Review: Strong Financials Despite Collections Miss, Says Motilal Oswal
Sunteck Realty Ltd. has reported its Q2 FY26 results, with pre-sales increasing by 34% YoY to Rs 7 billion. Although collections missed estimates, coming in 28% below at Rs 3.3 billion, the company’s strong financials have led Motilal Oswal to maintain its ‘Buy’ rating on the stock.
Pre-Sales and Collections
In H1 FY26, pre-sales were Rs 13.6 billion, up 32% YoY, while collections stood at Rs 6.8 billion, up 12% YoY. The company’s sound balance sheet and strong cash flows are expected to drive sustainable growth, with Indian real estate market trends indicating a positive outlook.
Motilal Oswal’s Outlook
Motilal Oswal’s research team expects Sunteck Realty to deliver a healthy 21% presales compound annual growth rate over FY25-28E, driven by a ramp-up in launches from both new and existing projects. The target price of Rs 574 implies a 33% upside potential, making it an attractive investment opportunity for Indian investors.
Key Takeaways
- Pre-sales increased by 34% YoY to Rs 7 billion in Q2 FY26
- Collections missed estimates, coming in 28% below at Rs 3.3 billion
- Motilal Oswal maintains ‘Buy’ rating with a target price of Rs 574
- Expected presales compound annual growth rate of 21% over FY25-28E
Investment Strategy
For Indian stock market investors, Sunteck Realty’s strong financials and growth prospects make it an attractive investment opportunity. However, it’s essential to consider the Indian economy news and global market trends before making any investment decisions.
Conclusion
In conclusion, Sunteck Realty’s Q2 results have been positive, despite a collections miss. With a strong balance sheet and growth prospects, the company is well-positioned for sustainable growth. Motilal Oswal’s research reports provide valuable insights for investors, and their ‘Buy’ rating on Sunteck Realty is a testament to the company’s potential.
