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Check Before You Invest : Sunteck Realty Ltd

BSE: 512179 NSE: SUNTECK ISIN: INE805D01034
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Sunteck Realty Ltd belong to?
Sunteck Realty Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Sunteck Realty Ltd a good quality company?
Sunteck Realty Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sunteck Realty Ltd undervalued or overvalued?
Sunteck Realty Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 42.84
Price to Book 1.96 3.10
Price to Sales 24.21 25.71
EV to EBITDA 175.83 88.26
Q.4 Is Sunteck Realty Ltd a good buy now?
Sunteck Realty Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sunteck Realty Ltd?
Sunteck Realty Ltd revenue growth is 98.7% for FY-2025, which is above its 5-year CAGR of 25.53%, indicating faster growth.

Q.2 Gross Profit margin of Sunteck Realty Ltd?
Sunteck Realty Ltd Gross profit margin which is the profit after deduction of direct costs, is 25% for FY-2025, which is above its 5-year median of 17.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Sunteck Realty Ltd?
Sunteck Realty Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.06% for FY-2025, which is above its 5-year median of 24.07% indicating increasing margins.

Q.4 Net Profit Margin of Sunteck Realty Ltd?
Sunteck Realty Ltd Net Profit Margin is 19.8% for FY-2025, is above its 5-year median of 12.05%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 25 17.1
Operating Profit Margin (%) 27.06 24.07
Net Profit Margin (%) 19.8 12.05

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sunteck Realty Ltd?
Sunteck Realty Ltd Return on Asset is 4.32%, which is above its 5-year historical median of 1.4%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sunteck Realty Ltd?
Sunteck Realty Ltd Return on capital employed is 8.3% for FY-2025, which is above its 5-year historical median of 3.86%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sunteck Realty Ltd?
Sunteck Realty Ltd Return on equity is 6.61% for FY-2025, which is above its 5-year historical median of 1.96%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sunteck Realty Ltd?
Sunteck Realty Ltd Cash conversion cycle is 330 days, below its 5-year historical median of 557 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.22 0.12
ROE (%) 6.61 1.96
ROCE (%) 8.3 3.86
Cash Conversion Cycle 330 days 557 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sunteck Realty Ltd?
Sunteck Realty Ltd Debt-to-Equity ratio is 0.16, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sunteck Realty Ltd?
Sunteck Realty Ltd Debt to cash flow from operations is 1.1, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sunteck Realty Ltd?

Q.1 Promoter shareholding and pledge status of Sunteck Realty Ltd?
Promoters hold 63.15% of the Sunteck Realty Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sunteck Realty Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sunteck Realty Ltd vs industry peers?
Sunteck Realty Ltd revenue CAGR is 25.53%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 98.7 0
Gross Profit Growth (%) 55.4 14.9
Operating Profit Growth (%) 58 10.4
Net Profit Growth (%) 65 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.22 0.1
ROE (%) 6.61 1.36
ROCE (%) 8.3 3.88
Cash Conversion Cycle (days) 330.33 439

Valuation & price assessment

Q.1 Stock return of Sunteck Realty Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
12.6% 5.2% 3.5% -8.8%
Q.2 Valuation ratios of Sunteck Realty Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 42.84, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 42.84 33.43
Price to Book 1.96 3.10 1.53
Price to Sales 24.21 25.71 5.23
EV to EBITDA 175.83 88.26 14.43

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