The market seems to have been spooked by this sale and has not yet grasped that it was a treasury sale and that the money stays with the company. I think this shows the prudent nature of the management and their conservative capital allocation philosophy. In a time hen there is so much of talk on real estate cycle taking off, in my opinion it is good to see that the management is still focusing on cash infusion for growth without raising additional debt when the interest rates are close to medium term highs.
Sunteck is still not cheap, probably fairly valued at about 4 times EV/pre-sales. The good news is the P&L will start reflecting growth from this quarter as Max World Naigaon gets completed, and will continue next year as ODC and Goregaon projects get completed then.
With the low float, these spokes can easily create fresh interest among retailers. Let’s see how things play out.
Disclosure: Invested from mid 200s