Sunteck Realty LimitedFull report →1 / 14
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Sunteck Realty Limited

Sunteck is a Mumbai-focused residential developer whose bookings and gross development pipeline have expanded faster than collections, cash generation and shareholder-attributable returns, with a small commercial annuity portfolio.

After a ₹146.75 pandemic trough, the shares reached ₹436.75 at the FY22 close and ended 21 July 2026 at ₹315.
₹315
Share price
₹4,625.5cr
Market value
₹1,123.8cr
FY26 revenue
₹41,030cr
Balance GDV
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Financials

Revenue and earnings recovered, while free cash flow turned negative

FY2024 → FY2026as reported · ₹
Revenue₹11.2B+32%
Net income₹2.0B+34%
EPS₹13.94+36%
Free cash flow−₹5.9B−₹7.5B
Open the full statements →
FY2024–FY2026 as reported.
  • Recognition. FY24–FY26 revenue rose from ₹564.8 crore to ₹1,123.8 crore; net income rose from ₹70.9 crore to ₹202.1 crore.
  • Per share. EPS climbed from ₹4.99 to ₹13.94 over the same period.
  • Cash. Free cash flow moved from ₹45.8 crore in FY24 to negative ₹589.2 crore in FY26.
Cash conversion

Company cash surplus and statutory cash flow diverged in FY26

Cash measures
Management's surplus excludes the land and JDA spend shown below it.
  • In FY26, Sunteck generated ₹3,157 crore of pre-sales and ₹1,433 crore of collections, or 45.4% of pre-sales, while its reported ₹552 crore net cash-flow surplus excluded ₹813 crore of business-development, landowner and JDA spend and statutory operating cash flow was negative ₹433 crore.
  • Counter-fact. Management reported 80% H1 FY26 collection efficiency on ongoing and completed projects; its denominator is instalments due, not annual pre-sales.
  • FY27 test. Collections must exceed ₹1,973 crore to top 50% of implied pre-sales, while operating cash flow must exceed ₹134 crore to reverse the FY24–FY26 deficit.
Owner attribution

Headline group equity overstates the book value attributable to owners

FY26 group equity
The owner-attributable portion is the relevant denominator for per-share book value.
  • At ₹315, Sunteck's ₹4,625.5 crore market value is 1.28 times the ₹3,611.1 crore FY26 equity attributable to shareholders, not 1.03 times the ₹4,472.1 crore headline group equity, because ₹861.1 crore belongs to non-controlling interests.
  • Counter-fact. ₹315 was 25.9% below the ₹425 warrant price, while promoter entities represented 66.5% of proposed capital.
  • Return check. FY26 ROE was 5.6%; the book case improves if returns reach double digits with positive operating cash flow.
Pipeline

Upcoming projects now make up 44.5% of balance GDV

FY26 balance GDV
Gross development value remaining at 31 March 2026.
  • Shift. Launched GDV fell from ₹24,760 crore in FY25 to ₹22,760 crore in FY26; upcoming GDV rose from ₹14,610 crore to ₹18,270 crore.
  • Boundary. The ₹41,030 crore total is gross potential selling value, before costs, landowner shares, approvals, timing and tax.
  • Decision marker. An upcoming share below 35% through formal launches would show the pool moving toward conversion.
Project mix

Two projects account for 43.3% of the balance GDV

Largest FY26 projects
ProjectStatusGDVShare
DubaiUpcoming₹9,000cr21.9%
KalyanLaunched₹8,800cr21.4%
ODC GoregaonLaunched₹5,060cr12.3%
NaigaonLaunched₹4,110cr10.0%
VasaiLaunched₹3,360cr8.2%
  • Concentration. Dubai and Kalyan together represent ₹17,800 crore, or 43.3% of balance GDV.
  • Ex-Dubai view. Upcoming GDV falls from ₹18,270 crore to ₹9,270 crore when Dubai is excluded.
  • Missing layer. Project GDV is disclosed more clearly than profit share, cash investment and collection timing.
MMR demand

MMR demand is supportive, but volume growth has paused

MMR residential activity
Industry sales and launches across the Mumbai Metropolitan Region.
  • Balance. FY26 sales fell 2% and launches fell 10%; sales exceeded launches by 8,544 units.
  • Pricing. Calendar 2025 prices rose 7% while unsold stock fell 6%; quarters to sell held at 6.4.
  • Execution. Sunteck pre-sales rose 24.7% against a 2% regional sales decline, evidence of a good year rather than an exclusive moat.
Promoter alignment

Promoter capital is substantial, but incentives favor expansion

63.3%
Promoter holding
₹332.5cr
Proposed commitment
₹4.05cr
FY25 MD pay
4 of 6
Independent directors
  • Control. Three family trusts hold 55.7%; aggregate promoter ownership was broadly stable before FY25 warrant issuance effects.
  • Pay. FY25 managing-director remuneration rose 45% to ₹4.05 crore, with no disclosed formula, bonus, options or commission.
  • Governance. Chairman and managing director remain combined, while the board has an independent majority and monitored issue proceeds.
Capital allocation

Most warrant proceeds were earmarked for land and projects

Proposed use of ₹499.99 crore
  • Funding received. By 31 March 2026, 3.0% of warrants had converted, while ₹136.25 crore, or 27.25% of issue cash, had been received.
  • Remaining terms. Exercise would add 7.8% to the FY26 share count and bring ₹363.75 crore of cash.
  • Timing. Warrants run for 18 months from allotment, but the filing does not disclose the allotment date, so the exact expiry cannot be set.
Dubai attribution

Dubai moved from a long-held joint venture exposure into consolidation

GGICO carrying exposure
FY21–FY25 carrying values before the October 2025 consolidation change.
  • Economics. Management's 50% project interest implies roughly ₹4,500 crore of gross economic GDV before construction cost, tax and timing.
  • Structure. A wholly owned intermediate company and a 50% project economic interest can coexist.
  • Open item. GGICO became a subsidiary on 27 October 2025; the ₹861.1 crore group-wide NCI cannot be assigned wholly to Dubai from current results.
Forward estimates

Consensus expects another earnings step-up, with wide outcomes

Revenue estimates
PeriodLowAverageHigh
FY27E₹1,319.0cr₹1,495.4cr₹1,858.6cr
FY28E₹1,475.8cr₹1,762.1cr₹2,122.3cr
  • Central path. Average revenue estimates imply 33% growth in FY27 and 18% in FY28.
  • Earnings. Average EPS rises to ₹18.98 and ₹22.49; FY28 estimates span ₹16.80 to ₹33.45.
  • Revisions. FY27 and FY28 EPS averages fell 12% and 16% over three months, and no operating cash-flow forecast is published.
FY27 watchlist

FY27 needs collections and cash flow to catch up with bookings

Operating thresholds
MetricFY26 baseFY27 threshold
Pre-sales₹3,157cr~₹3,946cr
Collections₹1,433cr>₹1,973cr
Statutory OCFnegative ₹433cr>₹134cr
Adjusted net debt/equity0.07x≤0.10x
  • Conversion. The collection and cash thresholds test whether growth is becoming self-funding rather than inventory-funded.
  • Launch slate. Near-term launch evidence matters most at Borivali, Vasai, Andheri and Nepean.
  • Combined pattern. Above-threshold collections, positive operating cash and leverage at or below 0.10x would strengthen the FY27 case.
Valuation

At ₹315, the stock sits near middle book and earnings sensitivities

Per-share sensitivity
Sensitivities use attributable book value and consensus EPS, not gross development value.
  • Current frame. ₹315 equals 1.28x FY26 attributable book and 16.6x average FY27 EPS.
  • Book range. A 20% haircut to attributable book gives ₹197–₹295 across 1.0x–1.5x; unhaircut book gives ₹246–₹369.
  • Earnings range. At 16x, average FY27 and FY28 EPS indicate ₹304 and ₹360; cash conversion determines how much weight they deserve.
What to watch

A larger pipeline and low leverage leave room; cash conversion and owner attribution remain the tests.

This short sequence distills a guided study built chapter by chapter.

Compiled from the full report · 2026-07-22 · For information, not investment advice.