Monday, July 27, 2026

Stocks to Buy: Motilal Oswal sees 43% upside in this real estate stock on multiple triggers

Date:

Shares of Sunteck Realty Ltd. surged as much as 3% from the day’s low on Friday, August 22. The stock has gained in the last four trading sessions.Brokerage firm Motilal Oswal has maintained its ‘Buy’ rating on Sunteck Realty, citing strong growth visibility. The brokerage has revised its price target to ₹561 per share, implying a potential upside of 43% from Thursday’s closing levels.

According to Motilal Oswal, Sunteck Realty is on a project acquisition spree with the aim of doubling its GDV every three years, guided by healthy cash flow generation.

So far, the company has acquired 11 projects with a total GDV of ₹39,800 crore. During FY21-24, it launched six projects with a GDV of ₹26,600 crore, achieving a 23% CAGR in pre-sales.
In FY25, Sunteck Realty reported pre-sales of ₹2,530 crore, up 32% YoY. Q1FY26 also recorded 31% YoY growth in pre-sales, led by strong contributions from uber-luxury and premium luxury projects.For Q2-Q4FY26, the company plans to launch projects with a total GDV of ₹11,000 crore.

Sunteck Realty has adopted an asset-light strategy to maintain a lean balance sheet while accelerating execution. Its in-house construction management provides control over both pace and quality of delivery.

Backed by a strong launch pipeline, Motilal Oswal expects Sunteck’s pre-sales to achieve a 24% CAGR over FY25-27E, while its collections and operating cash flow are projected to grow at a CAGR of 57% and 79%, respectively.

The brokerage added that a sound balance sheet and robust cash flows should further support project additions and drive sustainable growth.

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