Founded in 2000, Sunteck Realty (SRL) is a Mumbai-based real estate development company, catering to the ultra-luxury and luxury residential segment. SRL boasts of a city-centric development portfolio of about 25 million square feet spread across 24 projects at various stages of development and four rented assets.
Sunteck recorded Rs.200 crore in sales and nearly Rs.200 crore in collections in 3QFY16, the best quarterly report in the past three years.
While construction expenditure continued to remain low, Sunteck transacted a few deals with institutions for Bandra-Kurla Complex and Goregaon projects. Changes in development norms might alter the area at Goregaon (W) project, which will elongate monetisation period, we believe.
More commercial development will result in elongated development timelines and also affect realisations (lower realizations in commercial). While we await more clarity from the management on this, we change our estimates for the project thus affecting the NAV too.