Sunteck Realty: A Promising Buy with 43% Upside Potential, Says Motilal Oswal.

Sunteck Realty: A Promising Buy with 43% Upside Potential, Says Motilal Oswal

Sunteck Realty Ltd. is garnering attention in the real estate market with its recent stock surge and strong growth prospects. Shares of Sunteck Realty rose up to 3% on August 22, 2025, after consecutive gains in the last four trading sessions, fuelled by an encouraging report from brokerage firm Motilal Oswal.

The brokerage has reiterated its 'Buy' rating on Sunteck Realty, raising the price target to ₹561 per share. This represents a substantial upside potential of 43% from the stock’s previous closing levels. Several triggers underlie this optimistic outlook.

An Aggressive Project Acquisition Strategy

Sunteck Realty is aggressively expanding its project portfolio with the goal of doubling its Gross Development Value (GDV) every three years. To date, the company has acquired 11 projects amounting to a staggering GDV of ₹39,800 crore. Between fiscal years 2021 and 2024, it launched six projects with a GDV of ₹26,600 crore, witnessing a robust 23% compound annual growth rate (CAGR) in pre-sales.

Solid Sales Momentum

The company reported pre-sales of ₹2,530 crore in FY25, marking a 32% year-on-year increase. This growth momentum continued into the first quarter of FY26 with a 31% rise in pre-sales. The surge was mainly driven by Sunteck’s uber-luxury and premium luxury projects, highlighting its presence in the high-end real estate segment.

Future Launch Pipeline

Looking ahead, Sunteck Realty plans to launch projects with a combined GDV of approximately ₹11,000 crore across Q2 to Q4 of FY26. This strong pipeline supports the brokerage firm’s projection of a 24% CAGR in pre-sales for the company over FY25 to FY27.

Asset-Light Strategy & Financial Strength

Sunteck Realty's asset-light business model helps maintain a lean balance sheet, which is critical for financial health and sustainability. The company manages construction in-house, offering greater control over delivery timelines and quality. This operational efficiency, combined with a sound balance sheet and healthy cash flows, positions Sunteck Realty well for continued growth. Motilal Oswal projects collections and operating cash flow to grow at CAGRs of 57% and 79%, respectively, supporting future project additions and sustainable revenue growth.

Why Investors Should Consider Sunteck Realty

Motilal Oswal's analysis underscores Sunteck Realty’s unique combination of aggressive project acquisition, solid sales growth, a robust launch pipeline, and a disciplined approach to balance sheet management. This creates a compelling investment case with significant upside potential for investors eyeing the real estate sector.

With a 43% upswing projected, Sunteck Realty stands out as an attractive name backed by strong fundamentals and strategic execution. For stakeholders looking to capitalize on India’s premium real estate market growth, this stock merits serious consideration.