Based on my understanding It has an inventory of 2100 crores which has a margin for nearly 40% to 50% which translate to 1000 crores. The ODC project if i heard right will have a top line of 10000 crores over the years and assuming a lower margin of 20% could translate to 2000 crores. Company has good debt equity ratio.So it all depends on sales and execution over 3-4 years. Promoters have also invested with a lock in of one year.
disc: Invested.
I am a newbie here. can you please explain this statement - “Promoters have also invested with a lock in of one year.”
Recently Sunteck did a QIP where even the promoters participated in the QIP.
IMPORTANT !!!
http://www.bseindia.com/xml-data/corpfiling/AttachLive/27bcba16-965e-48d3-afd7-9634c5ba7dc2.pdf
Realty sector still not seeing vibrating -
May be crash in equity market could fuel realty investment !
The beauty of statistics and numbers is from which lens you look at it. What if I say similar things happened in other industries which led to bankrupcy of many players leading to supply constraints followed by okaish demand revival leading to better days for survivors 
my view is this sector is undergoing huge huge consolidation. There is a bloodbath going where 60-70 percent of players ( read those who got in just due to greed or political black money ) and can’t even manage working capital as they never bothered to create brand , focus on execution are going to get wiped off. The survivors who have genes to survive ( read strong balance sheet, execution n customer satisfaction mindset ) will see a good long term future . All said and done , real estate sector is cyclic one n when cycle turns ,the best of best also goes through tough time and hence it’s not a big and forget business . Entry n exit both need intelligent timing
If you look into realty stocks, most of stocks re-rated in PE terms but non of the company has good sales booking growth and collection growth inline with PE growth!
Caution - company booking revenue on pre-sales (New booking) and does not have good collection might get corrected once people loose hope!
Please find below link for investor presentation for Q3:
http://www.sunteckindia.com/pdf/financial/2018/results-presentation-q3.pdf
Results are encouraging as is self evident. 42% YOY increase in Pre sales (new bookings)is more heartening to see.
Discl: Invested
Getting hit by debt crisis -
Raising money at 9.25% interest rate (5th Oct 2018)
Earlier was on 20th July, 2018 at 8.40%
Within three month significant rise in interest rate.If real estate inventory does not improve sell velocity, rise in interest rate will definitely impact balance sheet of real estate companies in a big way
Q2 Results are out.
Top line contracted but margins have expanded. Would like to know what the forum members think.
Can some guide me to how to value real estate stock , I feel it is quite challenging than normal business?
Since the Covid outbreak, I was keeping a close eye on Real Estate cos, but I was very fearful as to which co to ponder upon, finally through this thread I can start somewhere now…
After the impact of Covid 19 on the real estate industry, it would be great if re-evaluation of Sunteck is made. Anyone?
