Analysts Just Published A Bright New Outlook For Sunteck Realty Limited's (NSE:SUNTECK)

Shareholders in Sunteck Realty Limited (NSE:SUNTECK) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The stock price has risen 5.3% to ₹401 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from Sunteck Realty's four analysts is for revenues of ₹13b in 2022, which would reflect a major 99% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 345% to ₹15.27. Before this latest update, the analysts had been forecasting revenues of ₹11b and earnings per share (EPS) of ₹13.80 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Sunteck Realty

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.2% to ₹452 per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sunteck Realty at ₹493 per share, while the most bearish prices it at ₹431. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

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. One thing stands out from these estimates, which is that Sunteck Realty is forecast to grow faster in the future than it has in the past, with revenues expected to display 150% annualised growth until the end of 2022. If achieved, this would be a much better result than the 16% annual decline 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 16% annually. Not only are Sunteck Realty's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Sunteck Realty could be worth investigating further.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Sunteck Realty that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. 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.
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