Sunteck reported improved gross sales of Rs 3.7 bn (6% y-o-y) towards collections of Rs 3.2 bn in Q4FY21 with a marked change in gross sales profile from luxurious phase in BKC to extra inexpensive and mid-income segments. Sunteck Realty has (i) low leverage – 0.18X web debt/fairness as of March 2021; (ii) no land financial institution; and (iii) has been aggressively increasing its portfolio throughout lower-ticket tasks in suburban Mumbai. We do concede weak gross sales for high-ticket items in BKC, though notice the growing contribution from tasks with a extra inexpensive ticket measurement. Preserve Purchase with revised FV of Rs 360/share (from Rs 345/share earlier).
Mid-income and inexpensive housing phase contributed 68% of gross sales in FY2021: Sunteck recognised revenues of Rs 1.9 bn (-7% q-o-q), Ebitda of Rs 391 mn (-13% y-o-y) and PAT of Rs 159 mn (-25% q-o-q), with an Ebitda margin of 20.5% in an operationally robust Q4FY21. In FY2021, Sunteck reported revenues of Rs 6.1 bn, Ebitda of Rs 1.4 bn and PAT of Rs 536 mn with Ebitda margin of twenty-two.3%.
New launches at lately acquired JD tasks to speed up gross sales: Sunteck has added a slew of JDA tasks (totaling ~8 mn sq. ft) over the previous 12 months. It’s planning to launch phases throughout Vasai, Vasind and Borivali (~Rs 4-5 bn every) in FY2022/ 23 with the intention to keep gross sales momentum achieved in FY2021.
Preserve Purchase: We notice that (i) launches of latest mid-income tasks, (ii) sustenance gross sales from new phases of extant tasks, in addition to (iii) readability on surplus land in Oshiwara will act as a key catalyst for the inventory, however affect of Covid on gross sales .