Timely project launches could bolster Sunteck Realty's prospects

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₹500–600 crore for its inaugural phase. The luxury Napean Sea Road project is also in the pipeline for an FY25 launch. "Delayed launches of new mid-income projects and slow sustenance sales from existing projects resulted in relatively slower pace of sales for Sunteck versus peers," said a Kotak Institutional Equities report.

However, Sunteck has a total gross development value of ₹30,300 crore from new launches and unsold inventory at existing projects and that should aid its FY24/25 pre-sales growth, added the report. That said, the pace of execution remains key. As far as business development is concerned, the company has added six projects spanning nearly 25.5 million square feet (msf) since the pandemic and the is negotiating some deals, hoping to close three soon, the management said.

"Sunteck Realty strong balance sheet (net debt to equity of 0.13x) and likely pickup in business development are the key positives," said a Nuvama Research report. On the commercial side, Sunteck has leased around 0.2msf built-up area in the Sunteck BKC51 project for 29 years and the annualized lease rentals of Rs36 crore from this should start coming in from the next month, the management said. Yet, shares of Sunteck Realty have declined 22% over the past year, in contrast to Nifty Realty Index’s 10% rise.