Sunteck Realty poised to register strong growth going forward
January 12, 2021
Stock moves up 3 per cent on operational update
The Sunteck Realty stock gained about 3 per cent in the bourses today on the back of strong bookings in the December quarter of FY21. During the quarter, bookings increased 7 per cent to Rs 349 crore compared to the same period last year, mostly supported by ready-to-move-in units and units nearing completion. Further, with incentives from the Centre and low interest rates on home loans, the company is positioned to benefit from improving demand conditions. Also, the company has a strong presence in the Mumbai micro markets, where the inventory overhang is low, giving the company the ability to command better prices. Sunteck Realty is a Mumbai-based realty player operating across residential segments - the mid-income, luxury and premium segments. During the December quarter, its collections registered 52 per cent y-o-y growth to Rs 252 crore.
Why the stock of Sunteck Realty is a good buy
Well-poised to benefit from housing-friendly measures announced by the government
The Covid-19 impact has resulted in demand slowdown in the real-estate sector. To give a boost to the residential segment, the Centre has announced a slew of measures including its push towards affordable housing segment, and interest rate concessions through credit linked subsidy scheme. This along with RBI’s interest rate cut and stamp duty rate reduction from the respective state Government are not only expected to bring back home buyers to the market, but also reduce the level of completed inventories in the respective states.