Earnings Report: Sunteck Realty Limited Missed Revenue Estimates By 46%

As you might know, Sunteck Realty Limited (NSE:SUNTECK) last week released its latest quarterly, and things did not turn out so great for shareholders. Sunteck Realty delivered a grave earnings miss, with both revenues (₹1.7b) and statutory earnings per share (₹2.36) falling badly short of analyst expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sunteck Realty after the latest results.

Check out our latest analysis for Sunteck Realty

Taking into account the latest results, the consensus forecast from Sunteck Realty's ten analysts is for revenues of ₹12.6b in 2025. This reflects a sizeable 33% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 68% to ₹17.10. In the lead-up to this report, the analysts had been modelling revenues of ₹13.5b and earnings per share (EPS) of ₹17.36 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of ₹693, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Sunteck Realty's market value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sunteck Realty, with the most bullish analyst valuing it at ₹764 and the most bearish at ₹515 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sunteck Realty's past performance and to peers in the same industry. For example, we noticed that Sunteck Realty's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 77% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 4.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 23% annually. So it looks like Sunteck Realty is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Sunteck Realty's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹693, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Sunteck Realty analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Sunteck Realty you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.