True it has run up. Question is what is built in this price rise. The management is bullish on growth (if you might have heard Mr. Kamal Khetan in last concall). I was just trying to verify this bullish stance. Listen to Mr. Keki Mistry of HDFC ltd., Mr. Niranjan Hiranandani of Hiranandani Developers and other veterans of real estate sector, they all have a common pointers - there’s going to be more consolidation in next 6 months and affordable housing is picking up because house prices have started going upwards (MMR has gone up by 10%), due to rise in material costs. So, my sense is, growth can come from - affordable housing stimulus, consolidation in industry, higher realisation on the back of higher prices.
I am invested in this space, hence maybe biased. No recommendation on buying/selling stock. Just sharing all I have read over past few months.
One interesting thing is being observed by expert fund managers - the IT companies having high attrition and high pay cheques to employees, which have gone through the roof very recently. Kenneth Andrade says the demand for real estate may come from these IT professional having high pay cheques as houses are priced such that house prices are 5-6 times their annual pay cheques. Supply limitations we have already talked about earlier. High growth real estate markets like MMR, Bangalore may see real estate volumes uptick. Also, the Real estate players now are not cutting down prices. These facts were also confirmed by Brigade Enterprises CEO in an bloomberg quint interview.
₹9,000CR in 7-9 years is around 1000Cr per year. Is this for only one project right?
Yes, 1000 crores only from this land parcel.
How do you guys see the current valuation and future growth of this company?
Sunteck now have a very healthy pipeline. With recent addition at Kalyan, this will be the fifth growth engine along with Vasai, Vasind, Borivali and Naigaon. These 5 projects will be able to generate close to 22000 crores topline for the company. With these, Sunteck have ODC and BKC(RTM Inventory).
If one will look at all the projects together, Sunteck will look undervalued. But all these projects will depend on so many factors like JD partners, regulatory approvals, execution of the projects, marketing, response from the customers etc. I will keep watching all these steps from Sunteck.
D: Invested
Revised target to 580.
https://www.valuequest.in/rera-real-estate-revival-ahead/
The article is not regarding Sunteck but the entire real estate sector and why it has got tailwinds. This is by far the best article I have read, covered all details, especially important ones.
This is a brilliant video, for those who have not watched it. Thanks a lot @Mehul-Solanki for sharing.
A lot of clarity about the business, strategy, accounting, cash flows and future pipeline. But most importantly, insights on Mr Khetan. Do watch if invested or interested in Sunteck, or real estate in gneral.
Disclosure: Invested. Full portfolio here Vineet Jain portfolio
One more project acquisition by Sunteck… 110 acres in Khopoli, near Mumbai for plotted / bungalow / 2nd home project. Will add another 4 to 5 million sq ft to their project pipeline. Details below.
Investor Presentation
Intresting statement: In the last 3 years – SRL has acquired ~36 msf across the pricing spectrum both on the western and eastern side of MMR. These projects would allow the company to generate its share of Rs ~100 bn+ operating surplus in the coming years.
If this statement is true and company is able to generate ~100 bn+ operating surplus in next 10 years then share will become multibagger.
What’s other though on this?
Healthy pre-sales continue. However I think one of the key differentiators and testament to Sunteck’s efficiency is their collection efficiency, which is now north of 80%!
Total of 23 million sqf of development potential acquired over the past year and a half, with a potential development value of 20,000cr. I crudely view this as analogous to capex plans for manufacturing companies (with asset turns of 1), or order book for infra companies. Looks very promising if the RE upcycle continues.
Invested from lower levels with details in my portfolio thread Vineet Jain portfolio
Very biased!
Not investment advice
Any experienced investor if can throw some light on the result would be very helpful as the revenue and profit shown degrowth for both 9m and yoy . Should we just concentrate on collection and pre sales ? @Worldlywiseinvestors your view please .