Motilal Oswal Reiterates BUY on Sunteck Realty Post-Q1 FY27 Results, Revises Target Price to ₹490 with 69% Upside

Motilal Oswal Raises Sunteck Realty Target to ₹490 Post-Q1 Results

Analysts at Motilal Oswal Financial Services (MOFSL) have reiterated their 'Buy' rating on Sunteck Realty following the company's financial results for the first quarter of FY27. The firm has revised its target price to ₹490, implying a 69 per cent upside potential.

Q1 FY27 Operational Momentum

The real estate company reported pre-sales of around Rs 787 crore in Q1 FY27, a 20 per cent year-on-year increase. The realty developer reported revenue of ₹192 crore in Q1FY27, compared with ₹188 crore in the year-ago quarter, up 2.1 per cent year-on-year, while EBITDA rose 39.6 per cent year-on-year to ₹67 crore from ₹48 crore, with EBITDA margin expanding to 35 per cent from 25 per cent.

Collections during the quarter reached INR 409 crore, marking a 17% increase compared to the same period in the previous year, while the company's net cash surplus saw an impressive rise of 79% year-on-year, amounting to INR 193 crore.

Segment Performance and Growth Pipeline

The pre-sales were fueled by the premium luxury segment, which comprised 50% of the quarterly pre-sales, followed by a 29% share of uber-luxury and a 21% share of aspirational luxury segments. Management expects a 25-30% pre-sales growth in the current year.

Sunteck Realty's strong launch pipeline worth INR71 billion, including projects at Andheri WEH, Mira Road, and additional towers in ODC, Vasai, and Naigaon, would boost pre-sales in FY27.

Balance Sheet and Equity Backing

The company's net debt-to-equity ratio is stable at 0.07x, reinforcing its conservative leverage strategy, while maintaining an AA long-term rating. The shareholder base includes marquee investors such as Goldman Sachs, Morgan Stanley, and Fidelity.

About Sunteck Realty

Sunteck Realty is a Mumbai-based luxury real estate developer founded in 2000 and promoted by the Khetan family, with a 50 million sq ft portfolio spread across 32 developments in the Mumbai Metropolitan Region (MMR), with a stated gross development value of $5 billion. The company emphasized its "focused, disciplined, capital-efficient" approach to developing premium homes and offices in the Mumbai Metropolitan Region, with a total gross development value (GDV) reaching Rs 42,700 crores across 10 micro-markets.

Dubai Expansion Possibility

Inclusion of the Dubai project's NAV, apart from the growth premium, can provide further upside, according to the MOFSL analysts.