Mid-revenue and cost-effective housing segment contributed 68% of sales in FY2021: Sunteck recognised revenues of Rs 1.9 bn (-7% q-o-q), Ebitda of Rs 391 mn (-13% y-o-y) and PAT of Rs 159 mn (-25% q-o-q), with an Ebitda margin of 20.5% in an operationally sturdy Q4FY21. In FY2021, Sunteck reported revenues of Rs 6.1 bn, Ebitda of Rs 1.4 bn and PAT of Rs 536 mn with Ebitda margin of 22.3%.
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New launches at lately acquired JD projects to accelerate sales: Sunteck has added a slew of JDA projects (totaling ~8 mn sq. ft) more than the previous year. It is preparing to launch phases across Vasai, Vasind and Borivali (~Rs 4-5 bn each and every) in FY2022/ 23 in order to retain sales momentum accomplished in FY2021.
Maintain Buy: We note that (i) launches of new mid-revenue projects, (ii) sustenance sales from new phases of extant projects, as effectively as (iii) clarity on surplus land in Oshiwara will act as a essential catalyst for the stock, notwithstanding effect of Covid on sales .