He has reduced the stake in the company but not exited it completely. While he did not give any reason why he pared his stake, I suspect that the price movement was not as per his expectations and he might have found investment opportunities elsewhere. The rationale behind why he invested in Sunteck initially is available in a YT video.
Yes, Rinkesh. That’s correct. He now owns only 2.2% of the company, a significant reduction from the initial 9.9% investment. I’ve watched the investment video you mentioned, and I was interested in understanding what prompted the shift in his Sunteck thesis if he mentioned it anywhere. He has also significantly reduced his investment in Rain, so perhaps it’s related to market trends rather than specific stocks.
Mr Pabrai is going all in on Turkey where he finds the entire market in deep value territory. In fact if anything, his selling is reliving the overhang. CLSA bought most of what he sold. The public shareholding has not increased materially.
Company has missed its pre-sales target of Rs.2000 crores for the year 2023-24. Also, collections have fallen marginally during the year from Rs.1250 crores to Rs.1236 crores.
Expected pre-sales growth: 18%-20% in FY24 and FY25.
Collections to be lower at 60%-65% of pre-sales over FY24-FY26 as large portion of the sales have been achieved in initial stage projects
Expected to launch a commercial project of around 1 million square feet in the ODC cluster, which expects to generate rental income of INR2.0 billion-2.5 billion.
The ready-to-move unsold inventory at end-9MFY24 is worth more than INR16.0 billion.
Asset-light JDA approach
JDA projects do not involve any material upfront cash outgo as the company gives landowners a share of customer collections and there is no material upfront cash.
The only outright acquisition has been in Napean Sea Road in South Mumbai.
Total free cash flow (accounting for any capex/ JDA, but excluding interest) of around INR2.1 billion over FY25-FY27.