Nuvama retains 'Buy' on Sunteck Realty, trims target to ₹531 on MMR caution

Mumbai-based developer Sunteck Realty has delivered a solid Q2FY26 showing (pre-sales up ~34 per cent Y-o-Y; collections up ~24 per cent Y-o-Y) and its management reinforced its FY26 growth guidance of 30-35 per cent pre-sales expansion. 

 

On the back of this, brokerage firm Nuvama has maintained its ‘Buy’ rating, while trimming its 12-month target price to ₹531 from ₹560, based on a rollover to Q2FY28E. 

 

Analysts at Nuvama point out that one of Sunteck’s standout strengths is its very healthy balance sheet, with net debt to equity at a mere ~0.05x, giving the company major financial flexibility to pursue launches and absorb market swings. In a real-estate context where leverage and execution risk remain critical, this low gearing is a differentiator.

 

 

The other major positive is Sunteck’s robust launch pipeline, analysts said. The company has flagged multiple upcoming launches in H2FY26 including a marquee ultra-luxury project in Nepean Sea Road (~₹2,400 crore GDV), new phases in ODC (Goregaon), Andheri, Mira Road, Vasai and Naigaon. These are intended to drive its next wave of bookings and maintain the growth momentum. Nuvama analysts believe that these fresh projects, combined with existing ones, put the company in a good position to hit its growth targets.

 

However, Nuvama remains cautious about the near-term demand environment amid signs of moderation in the Mumbai Metropolitan Region (MMR) housing market. While Sunteck’s balance sheet strength and project pipeline support its growth visibility, softer market sentiment could weigh on the pace of new bookings and collections.

 

Overall, Nuvama believes Sunteck offers a healthy risk-reward profile, backed by strong fundamentals and steady execution. The brokerage expects the company to sustain growth if planned launches achieve targeted sales velocity, though broader MMR trends will be key to sustaining momentum through FY26.

 

About Sunteck Realty

 

Sunteck Realty, headquartered in Mumbai, is a leading real estate developer with a strong presence in the luxury and ultra-luxury housing segment. Established in 1981 by first-generation entrepreneur Kamal Khetan, the company has built a niche in premium residential and commercial properties within the Mumbai Metropolitan Region (MMR). 

 

Known for marquee developments such as Signature Island at Bandra Kurla Complex (BKC), home to several high-profile residents, Sunteck has become synonymous with exclusivity and design excellence. Its portfolio spans about 52.2 million square feet across 32 projects, backed by a growth strategy centered on strategic acquisitions, partnerships, and operational efficiency.