- India
- /
- Real Estate
- /
- NSEI:SUNTECK
Should You Think About Buying Sunteck Realty Limited (NSE:SUNTECK) Now?
Sunteck Realty Limited (NSE:SUNTECK), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹596 at one point, and dropping to the lows of ₹490. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Sunteck Realty's current trading price of ₹498 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Sunteck Realty’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Sunteck Realty
Is Sunteck Realty Still Cheap?
Sunteck Realty is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Sunteck Realty’s ratio of 48.95x is above its peer average of 35.77x, which suggests the stock is trading at a higher price compared to the Real Estate industry. Another thing to keep in mind is that Sunteck Realty’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards the levels of its industry peers over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard for it to fall back down into an attractive buying range again.
What kind of growth will Sunteck Realty generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Sunteck Realty's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? SUNTECK’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe SUNTECK should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on SUNTECK for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for SUNTECK, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
If you'd like to know more about Sunteck Realty as a business, it's important to be aware of any risks it's facing. For example - Sunteck Realty has 1 warning sign we think you should be aware of.
If you are no longer interested in Sunteck Realty, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About NSEI:SUNTECK
Sunteck Realty
Engages in real estate construction and development business in India.
Flawless balance sheet with high growth potential and pays a dividend.