Share of Sunteck Realty rose over 8 per cent to hit an intraday high of Rs 378.40 on BSE after the company announced its operational update for the quarter ended June 2021.
The company reported a 74 per cent jump in bookings at Rs 176 crore in Q1 FY22, up 74 per cent on a year-on-year basis. Collections for the quarter stood at Rs 172 crore, up 165 per cent on a year-on-year basis.
The stock has been gaining for the last few trading sessions and has delivered 25 per cent return in the last one week. It opened 5 per cent higher at Rs 367.50 against the previous close of Rs 348.60 on BSE. The share touched its 52-week high of Rs 393.95 on January 14, 2021, and a 52-week low of Rs 164.40 on July 17.
It has delivered 89 per cent return in one year and risen 4 per cent since the beginning of this year. With a market capitalisation of over Rs 5,300 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
“In the quarter gone by, we continued our strong momentum in operational performance. Both pre-sales and collections witnessed sturdy growth along with high collections efficiency. The industry consolidation is leading to rise in the share of business for organized developers and Sunteck will be one of the biggest beneficiaries of this trend,” said Mr. Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd.
“Going forward, we expect to leverage our brand franchise and management expertise to evaluate new growth opportunities and thereby continue to increase our overall market share,” he noted.
“A key to our strong operational performance is being a dominant developer in each of the micromarkets and housing segments we are operating. Additionally, the focus on our core strength of sales & marketing and in-house construction capabilities will enable us to sustain this strong pre-sales and collections trend going forward,” he added.
According to MarketsMojo, the technical trend has improved from Sideways on July 5, 2021. The stock is technically in a Mildly Bullish range now and has generated 20.43 per cent return since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV. However, it noted that the stock has a very expensive valuation.
CLSA has a ‘Buy’ call on the stock and raised the target price to Rs 440 per share from Rs 425 earlier. The brokerage house has increased the pre-sale estimates by 12 percent and 9 percent for FY22 and FY23, respectively.