Prabhudas Lilladher keeps Sunteck Realty at Buy with Rs 450 target

Prabhudas Lilladher has retained its Buy rating on Sunteck Realty Limited after the developer's September quarter results, while lowering its target price to Rs 450 per share from Rs 520. The brokerage's result update, dated 28 October 2026, covers the second quarter of fiscal 2027 and values the Mumbai-based developer on a one-year-forward net asset value basis.

Pre-sales rose 17 per cent year on year to Rs 824 crore in the quarter, even though Sunteck launched no new projects during the period. Collections grew 12 per cent to Rs 371 crore, revenue increased 27 per cent to Rs 321 crore, and net profit rose 17 per cent to Rs 57.11 crore. For the first half of the year, pre-sales reached Rs 1,611 crore, up 19 per cent.

Quarterly performance and valuation

Earnings before interest, tax, depreciation and amortisation grew 13 per cent, while profit after tax rose 17 per cent. The embedded EBITDA margin stood at 30 per cent for the first half, up 160 basis points. Half-year collections reached Rs 780 crore, and the collections conversion ratio improved to 45 per cent from 40 per cent a year earlier. Net debt-to-equity stood at 0.09 times.

The brokerage's valuation builds to a fiscal 2027 gross net asset value of Rs 8,631.9 crore. Residential projects account for Rs 6,889.6 crore of that figure, commercial space for sale Rs 1,243.1 crore and commercial space for lease Rs 499.2 crore. After adding cash and deducting gross debt, the net asset value comes to Rs 7,759.2 crore. The target price applies a 15 per cent discount to that forward value.

• Q2 FY27 pre-sales: Rs 824 crore, up 17 per cent
• Q2 FY27 collections: Rs 371 crore, up 12 per cent
• Q2 FY27 revenue: Rs 321 crore, up 27 per cent
• Q2 FY27 net profit: Rs 57.11 crore, up 17 per cent
• H1 FY27 embedded EBITDA margin: 30 per cent

Prabhudas Lilladher expects pre-sales to compound at more than 20 per cent a year between fiscal 2026 and fiscal 2028, provided project execution stays on schedule. Its last published target was Rs 520, reiterated in April 2026 with a Buy rating. The brokerage previously carried a Rs 650 target in May 2025.

Sales mix and project pipeline

In the June quarter, premium luxury projects under the Sunteck City, Skypark and Beach Residences names contributed about 50 per cent of pre-sales. Uber-luxury projects under the Signature, Signia and Nepean Sea names made up 29 per cent, and aspirational luxury under the Sunteck World brand accounted for 21 per cent.

Sunteck's gross development value balance stood at Rs 46,880 crore on 30 September 2026, net of sales already effected. Over the trailing twelve months, the company added Rs 7,950 crore of gross development value across four additions. At the end of the first half of fiscal 2027, Rs 7,676 crore had been launched, Rs 13,900 crore was classified as ready for launch pending approvals, and Rs 25,304 crore was in planning and design.

In Mumbai, the company bought a 4.5-acre parcel in Borivali West, disclosed on 5 October 2026. In January 2026, it closed on a 1.75-acre greenfield site in Andheri East, off Andheri-Kurla Road and Sahar Road, with an expected gross development value of about Rs 2,500 crore. The Andheri East site was acquired through its subsidiary Apricum Buildwell.

Location and market context

The Borivali West parcel lies adjacent to New Link Road in the western suburbs, an established residential market with strong road connectivity. The Andheri East site sits close to the Andheri-Kurla Road corridor, which links the eastern suburbs with the Bandra Kurla Complex business district and the Sahar Road belt near the airport. Both locations place the company in micro-markets where demand for premium housing has held steady.

Knight Frank data cited in the brokerage's coverage points to firm demand across the Mumbai Metropolitan Region, with new launches up 18 per cent and sales in the first nine months of the year at a nine-year high. Sunteck's operations are concentrated in this region, which it describes across ten micro-markets, three customer segments and three development models.

The developer

Sunteck Realty was founded in 2000 by Kamal Khetan, who serves as Chairman and Managing Director. The company traces its origins to Insul Electronics Private Limited, incorporated in 1981, and was renamed Sunteck Realty Limited in 2007 after a change of control in 2005. Its portfolio spans about 52.5 million square feet across 32 projects, sold under six brands including Signature, Signia, Sunteck City and Sunteck World. It has delivered 17 residential and commercial projects worth about Rs 9,000 crore. Its landmark projects include Signature Island, Sunteck City and SunteckWorld. India Ratings has reaffirmed the company's IND AA/Stable rating.

The company entered Dubai with an ultra-luxury pipeline of AED 15 billion over three years. Its first project there is a residential development in Downtown Dubai, planned on a 2.5-acre parcel near the Burj Khalifa and Dubai Mall, with a gross development value of AED 5 billion.

What comes next

The company has said it aims to secure a RERA launch for its Nepean Sea Road project before the end of fiscal 2027, with demolition work already under way. The Dubai joint venture is planned for fiscal 2028. Management says the Dubai project has all required regulatory approvals and is launch-ready, with timing being set against current market conditions.

Of the gross development value slated for launch, about Rs 9,000 crore comes from Dubai projects. Excluding Dubai, the pipeline is close to Rs 7,100 crore and includes the Oshiwara District Centre projects, the Andheri redevelopment, Sunteck Park Mira Road 2 and Vasai. On its first-quarter call, management said it was confident of 25 to 30 per cent pre-sales growth for fiscal 2027, supported by the project pipeline. Investors will watch whether that pace holds as the new launches arrive.