Sunteck Realty (NSEI:SUNTECK) - Share price, News & Analysis

Q: What is the Fair Price of SUNTECK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SUNTECK (₹502) is trading above our estimate of [[fair value]] (₹15.83)

SUNTECK fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

SUNTECK Stock Overview

Sunteck Realty Limited, together with its subsidiaries, engages in real estate construction and development business in India.

Rewards

Earnings are forecast to grow 54.71% per year

Risk Analysis

SUNTECK passed our risk checks.

Sunteck Realty Competitors

Brigade Enterprises

BSE:532929

₹101.5b

Phoenix Mills

BSE:503100

₹202.9b

Indiabulls Real Estate

NSEI:IBREALEST

₹35.7b

Anant Raj

BSE:515055

₹15.7b

Price History & Performance

Summary of all time highs, changes and price drops for Sunteck Realty
Historical stock prices
Current Share Price	₹502.00
52 Week High	₹589.90
52 Week Low	₹292.05
Beta	0.59
1 Month Change	15.05%
3 Month Change	11.63%
1 Year Change	63.31%
3 Year Change	8.80%
5 Year Change	104.34%
Change since IPO	89.49%

Shareholder Returns

	SUNTECK	IN Real Estate	IN Market
7D	9.5%	4.6%	4.1%
1Y	63.3%	21.6%	-0.02%

Return vs Industry: SUNTECK exceeded the Indian Real Estate industry which returned 20.2% over the past year.

Return vs Market: SUNTECK exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is SUNTECK's price volatile compared to industry and market?
SUNTECK volatility
SUNTECK Average Weekly Movement	7.3%
Real Estate Industry Average Movement	7.3%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: SUNTECK is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SUNTECK's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	400	Mahesh Sheregar	https://www.sunteckindia.com

Sunteck Realty Limited, together with its subsidiaries, engages in real estate construction and development business in India. The company designs, develops, and manages residential, commercial, retail, and mixed-use properties under the Signature, Signia, Sunteck, Sunteck City, Sunteck World, and Gilbird Hill brands. It also leases properties; and provides incidental services.

Sunteck Realty Fundamentals Summary

How do Sunteck Realty's earnings and revenue compare to its market cap?
SUNTECK fundamental statistics
Market Cap	₹70.48b
Earnings (TTM)	₹250.83m
Revenue (TTM)	₹5.13b

281.0x

P/E Ratio

13.7x

P/S Ratio

Is SUNTECK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUNTECK income statement (TTM)
Revenue	₹5.13b
Cost of Revenue	₹2.57b
Gross Profit	₹2.56b
Other Expenses	₹2.31b
Earnings	₹250.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.79
Gross Margin	49.85%
Net Profit Margin	4.89%
Debt/Equity Ratio	28.2%

How did SUNTECK perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

84%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SUNTECK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUNTECK?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SUNTECK. This is calculated by dividing SUNTECK's market cap by their current preferred multiple.
What is SUNTECK's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹70.48b

SUNTECK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	15.1x
Enterprise Value/EBITDA	81.2x
PEG Ratio	5.1x

Price to Sales Ratio vs Peers

How does SUNTECK's PS Ratio compare to its peers?

SUNTECK PS Ratio vs Peers

The above table shows the PS ratio for SUNTECK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.7x
532929 Brigade Enterprises	3.4x	13.9%	₹101.5b
503100 Phoenix Mills	13.7x	28.4%	₹202.9b
IBREALEST Indiabulls Real Estate	2.5x	15.7%	₹35.7b
515055 Anant Raj	3.4x	n/a	₹15.7b
SUNTECK Sunteck Realty	13.7x	33.0%	₹70.5b

Forward PS

Price-To-Sales vs Peers: SUNTECK is expensive based on its Price-To-Sales Ratio (13.7x) compared to the peer average (5.7x).

Price to Earnings Ratio vs Industry

How does SUNTECK's PE Ratio compare vs other companies in the IN Real Estate Industry?

Price-To-Sales vs Industry: SUNTECK is expensive based on its Price-To-Sales Ratio (13.7x) compared to the Indian Real Estate industry average (4.4x)

Price to Sales Ratio vs Fair Ratio

What is SUNTECK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUNTECK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	13.7x
Fair PS Ratio	8.2x

Price-To-Sales vs Fair Ratio: SUNTECK is expensive based on its Price-To-Sales Ratio (13.7x) compared to the estimated Fair Price-To-Sales Ratio (8.2x).

Share Price vs Fair Value

What is the Fair Price of SUNTECK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUNTECK (₹502) is trading above our estimate of fair value (₹15.83)

Significantly Below Fair Value: SUNTECK is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: SUNTECK is poor value based on its PEG Ratio (5.1x)

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Future Growth

How is Sunteck Realty forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

54.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNTECK's forecast earnings growth (54.7% per year) is above the savings rate (6.7%).

Earnings vs Market: SUNTECK's earnings (54.7% per year) are forecast to grow faster than the Indian market (17.4% per year).

High Growth Earnings: SUNTECK's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUNTECK's revenue (33% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: SUNTECK's revenue (33% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SUNTECK's Return on Equity is forecast to be low in 3 years time (12.7%).

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Past Performance

How has Sunteck Realty performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-31.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUNTECK has high quality earnings.

Growing Profit Margin: SUNTECK's current net profit margins (4.9%) are lower than last year (6.8%).

Past Earnings Growth Analysis

Earnings Trend: SUNTECK's earnings have declined by 31.8% per year over the past 5 years.

Accelerating Growth: SUNTECK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNTECK had negative earnings growth (-40.2%) over the past year, making it difficult to compare to the Real Estate industry average (34.1%).

Return on Equity

High ROE: SUNTECK's Return on Equity (0.9%) is considered low.

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Financial Health

How is Sunteck Realty's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SUNTECK's short term assets (₹49.9B) exceed its short term liabilities (₹22.5B).

Long Term Liabilities: SUNTECK's short term assets (₹49.9B) exceed its long term liabilities (₹4.6B).

Debt to Equity History and Analysis

Debt Level: SUNTECK's net debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: SUNTECK's debt to equity ratio has reduced from 50.6% to 28.2% over the past 5 years.

Debt Coverage: SUNTECK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SUNTECK's interest payments on its debt are not well covered by EBIT (1.1x coverage).

Balance Sheet

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Dividend

What is Sunteck Realty current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SUNTECK's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: SUNTECK's dividend (0.3%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: SUNTECK's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUNTECK's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.8%), SUNTECK's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SUNTECK is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure

CEO

Mahesh Sheregar

2.42yrs

Tenure

₹9,248,000

Compensation

Mr. Mahesh K. Sheregar serves as Chief Executive Officer at Sunteck Realty Limited since 2020 and served as Director since 2020 to March 2022. He served as Chief Executive Officer of International Operatio...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Mahesh's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Mahesh's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SUNTECK's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: SUNTECK's board of directors are considered experienced (3.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SUNTECK insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31