Focus on the real estate sector now. Jefferies said Sunteck Realty’s consistent 30% year-on-year pre-sales growth, steady collections, and expanding premium portfolio signal sustained earnings momentum through FY26. In its latest report, Jefferies stated that Sunteck has maintained one of the best execution records among mid-sized, Mumbai-focused real estate firms.
Jefferies placed Sunteck Realty among its preferred mid-cap picks in real estate, citing the company’s ability to sustain 25–30% pre-sales growth while maintaining one of the lowest leverage levels in the sector. It stated that new project launches across Mumbai’s suburbs and redevelopment opportunities will act as catalysts for improved earnings visibility.
The brokerage has reaffirmed its Buy rating with a target price of Rs 575, implying a 34% upside from its latest close.
Jefferies on Sunteck Realty: Steady pre-sales, rising collection efficiency
Jefferies said Sunteck’s second-quarter performance underscored the company’s strong operational rhythm.
Pre-sales in the September quarter grew nearly 30% year-on-year, marking the 12th consecutive quarter of double-digit growth.
Collections also rose sharply to Rs 390 crore from Rs 303 crore a year earlier, reflecting stronger buyer payments and faster construction-linked inflows.
The brokerage noted that Sunteck’s average selling price (ASP) improved by 7% year-on-year due to a higher share of premium projects, while launch velocity remained high, particularly in Bandra Kurla Complex (BKC), Naigaon, and ODC Goregaon.
Jefferies on Sunteck: Luxury focus drives next growth phase
Jefferies said Sunteck’s next leg of growth will come from the luxury and upper mid-income segments, led by projects in BKC, Kalyan, and Mira Road, as well as its Dubai project, which is on track for launch in FY26.
The brokerage added that Sunteck’s diversified portfolio across income categories from affordable to ultra-luxury provides earnings stability and flexibility amid shifting market demand.
“The company’s strong presence across MMR, coupled with a disciplined approach to project selection, allows it to benefit from demand tailwinds in both premium and value housing,” Jefferies said in the report.
Jefferies on Sunteck: Business development pipeline expands
Sunteck’s business development (BD) pipeline remains robust, with potential gross development value (GDV) of around Rs 2 lakh crore, including Rs 45,000 crore of active projects under execution.
Jefferies said the company continues to follow an asset-light model, preferring joint development agreements (JDAs) and joint ventures (JVs) to limit upfront land costs and debt.
During FY25 so far, the company has added nearly 5 million sq. ft. of new projects, primarily in MMR, with a focus on redevelopment opportunities.
“This strategy provides scalability without leverage stress,” the brokerage said, noting that Sunteck’s leverage ratio remains among the lowest in its peer set.
Jefferies on Sunteck: Low gearing, strong balance sheet support growth
Jefferies said Sunteck’s balance sheet remains healthy, supported by minimal debt and strong cash flow generation.
Net debt stood at Rs 330 crore as of September 2025, down from Rs 370 crore in the previous quarter, with a net debt-to-equity ratio of just 0.14x.
“The company’s conservative financial structure offers room to fund upcoming launches while maintaining liquidity flexibility,” Jefferies wrote.
It added that Sunteck’s cash flow visibility, aided by strong bookings, faster collections, and high-margin premium projects, underpins sustainable growth.
Sunteck Realty’s financial performance and margins
Jefferies said reported revenue for FY25 is likely to rise to Rs 1,600 crore from Rs 1,225 crore in FY24, while net profit could climb to Rs 265 crore from Rs 212 crore, reflecting stronger operating leverage and rising ASPs.
The brokerage expects EBITDA margins to improve to 27% from 25%, driven by a larger share of high-value projects.
It also noted that cost efficiency at project sites and better procurement terms have helped offset input price inflation.
Jefferies on Sunteck: Valuation and upside scenario
Jefferies valued Sunteck Realty using a net asset value (NAV) approach, applying a 15% discount to its FY26 estimated NAV of Rs 680 per share.
At the current price, the stock trades at a 36% discount to NAV, which Jefferies said is “attractive given the company’s improving pre-sales visibility and strong brand franchise in Mumbai.”
Its base-case target of Rs 575 implies a 34% upside, while the bull-case valuation is pegged at Rs 640, indicating gains of about 50%.
The bear-case estimate stands at Rs 320, representing a 25% downside, factoring in delayed approvals or slower launches.
Jefferies on the real estate sector
Jefferies said luxury and upper-mid housing demand remains robust in Mumbai, Pune, and NCR, supported by rising disposable income and constrained supply in premium micro-markets.
The brokerage observed that high-end projects have seen 15–18% price appreciation in the past year, with absorption outpacing new supply in most Tier-I cities.
It added that Mumbai’s premium residential segment is “structurally strong,” aided by limited inventory, high rental yields, and NRI interest.
In this backdrop, developers with a focused presence in MMR, including Sunteck, Oberoi Realty, and Lodha, are expected to maintain their growth momentum.