Sunteck Realty Limited Recorded A 18% Miss On Revenue: Analysts Are Revisiting Their Models

Investors in Sunteck Realty Limited (NSE:SUNTECK) had a good week, as its shares rose 2.4% to close at ₹463 following the release of its quarterly results. Revenues were ₹1.6b, 18% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹4.99 being in line with what the analysts forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Sunteck Realty

After the latest results, the ten analysts covering Sunteck Realty are now predicting revenues of ₹17.0b in 2026. If met, this would reflect a huge 59% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 86% to ₹25.54. In the lead-up to this report, the analysts had been modelling revenues of ₹17.1b and earnings per share (EPS) of ₹25.62 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹714, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sunteck Realty, with the most bullish analyst valuing it at ₹784 and the most bearish at ₹624 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Sunteck Realty's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 24% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sunteck Realty is expected to grow much faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Sunteck Realty going out to 2027, and you can see them free on our platform here.

You can also see whether Sunteck Realty is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.