SUNTECKNSEThe short version
Sunteck Realty Limited
Sunteck is a Mumbai-focused residential developer whose bookings and gross development pipeline have expanded faster than collections, cash generation and shareholder-attributable returns, with a small commercial annuity portfolio.
After a $1.94 pandemic trough, the shares reached $5.77 at the FY22 close and ended 21 July 2026 at $3.27.
$3.27
Share price
$480.6m
Market value
$119.8m
FY26 revenue
$4.37b
Balance GDV
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Financials
Revenue and earnings recovered, while free cash flow turned negative
FY2024 → FY2026as reported · $
Revenue$120M+20%
Net income$22M+22%
EPS$0.15+25%
Free cash flow−$63M−$81M
Open the full statements →FY2024–FY2026 as reported.
- Recognition. FY24–FY26 revenue rose from $67.7 million to $119.8 million; net income rose from $8.5 million to $21.5 million.
- Per share. EPS climbed from $0.06 to $0.15 over the same period.
- Cash. Free cash flow moved from $5.5 million in FY24 to negative $62.8 million in FY26.
Cash conversion
Company cash surplus and statutory cash flow diverged in FY26
Cash measures
Management's surplus excludes the land and JDA spend shown below it.
- In FY26, Sunteck generated $336.5 million of pre-sales and $152.8 million of collections, or 45.4% of pre-sales, while its reported $58.8 million net cash-flow surplus excluded $86.7 million of business-development, landowner and JDA spend and statutory operating cash flow was negative $46.2m.
- Counter-fact. Management reported 80% H1 FY26 collection efficiency on ongoing and completed projects; its denominator is instalments due, not annual pre-sales.
- FY27 test. Collections must exceed $205.0 million to top 50% of implied pre-sales, while operating cash flow must exceed $10.8 million to reverse the FY24–FY26 deficit.
Owner attribution
Headline group equity overstates the book value attributable to owners
FY26 group equity
Attributable to shareholders$384.9M81%
Non-controlling interests$91.8M19%
The owner-attributable portion is the relevant denominator for per-share book value.
- At $3.27, Sunteck's $480.6 million market value is 1.28 times the $384.9 million FY26 equity attributable to shareholders, not 1.03 times the $476.7 million headline group equity, because $91.8 million belongs to non-controlling interests.
- Counter-fact. $3.27 was 25.9% below the $4.79 warrant price, while promoter entities represented 66.5% of proposed capital.
- Return check. FY26 ROE was 5.6%; the book case improves if returns reach double digits with positive operating cash flow.
Pipeline
Upcoming projects now make up 44.5% of balance GDV
FY26 balance GDV
Launched$2,426.2M55%
Upcoming$1,947.6M45%
Gross development value remaining at 31 March 2026.
- Shift. Launched GDV fell from $2.90 billion in FY25 to $2.43 billion in FY26; upcoming GDV rose from $1.71 billion to $1.95 billion.
- Boundary. The $4.37 billion total is gross potential selling value, before costs, landowner shares, approvals, timing and tax.
- Decision marker. An upcoming share below 35% through formal launches would show the pool moving toward conversion.
Project mix
Two projects account for 43.3% of the balance GDV
Largest FY26 projects
| Project | Status | GDV | Share |
|---|---|---|---|
| Dubai | Upcoming | $959.4m | 21.9% |
| Kalyan | Launched | $938.1m | 21.4% |
| ODC Goregaon | Launched | $539.4m | 12.3% |
| Naigaon | Launched | $438.1m | 10.0% |
| Vasai | Launched | $358.2m | 8.2% |
- Concentration. Dubai and Kalyan together represent $1.90 billion, or 43.3% of balance GDV.
- Ex-Dubai view. Upcoming GDV falls from $1.95 billion to $988 million when Dubai is excluded.
- Missing layer. Project GDV is disclosed more clearly than profit share, cash investment and collection timing.
MMR demand
MMR demand is supportive, but volume growth has paused
MMR residential activity
Industry sales and launches across the Mumbai Metropolitan Region.
- Balance. FY26 sales fell 2% and launches fell 10%; sales exceeded launches by 8,544 units.
- Pricing. Calendar 2025 prices rose 7% while unsold stock fell 6%; quarters to sell held at 6.4.
- Execution. Sunteck pre-sales rose 24.7% against a 2% regional sales decline, evidence of a good year rather than an exclusive moat.
Promoter alignment
Promoter capital is substantial, but incentives favor expansion
63.3%
Promoter holding
$37.4m
Proposed commitment
$0.47m
FY25 MD pay
4 of 6
Independent directors
- Control. Three family trusts hold 55.7%; aggregate promoter ownership was broadly stable before FY25 warrant issuance effects.
- Pay. FY25 managing-director remuneration rose 45% to $0.47 million, with no disclosed formula, bonus, options or commission.
- Governance. Chairman and managing director remain combined, while the board has an independent majority and monitored issue proceeds.
Capital allocation
Most warrant proceeds were earmarked for land and projects
Proposed use of $56.3 million
Land and project development$42.3M75%
General corporate purposes$14.0M25%
- Funding received. By 31 March 2026, 3.0% of warrants had converted, while $14.5 million, or 27.25% of issue cash, had been received.
- Remaining terms. Exercise would add 7.8% to the FY26 share count and bring $37.8 million of cash.
- Timing. Warrants run for 18 months from allotment, but the filing does not disclose the allotment date, so the exact expiry cannot be set.
Dubai attribution
Dubai moved from a long-held joint venture exposure into consolidation
GGICO carrying exposure
FY21–FY25 carrying values before the October 2025 consolidation change.
- Economics. Management's 50% project interest implies roughly $539.6 million of gross economic GDV before construction cost, tax and timing.
- Structure. A wholly owned intermediate company and a 50% project economic interest can coexist.
- Open item. GGICO became a subsidiary on 27 October 2025; the $91.8 million group-wide NCI cannot be assigned wholly to Dubai from current results.
Forward estimates
Consensus expects another earnings step-up, with wide outcomes
Revenue estimates
| Period | Low | Average | High |
|---|---|---|---|
| FY27E | $137.0m | $155.4m | $193.1m |
| FY28E | $153.3m | $183.1m | $220.5m |
- Central path. Average revenue estimates imply 33% growth in FY27 and 18% in FY28.
- Earnings. Average EPS rises to $0.20 and $0.23; FY28 estimates span $0.17 to $0.35.
- Revisions. FY27 and FY28 EPS averages fell 12% and 16% over three months, and no operating cash-flow forecast is published.
FY27 watchlist
FY27 needs collections and cash flow to catch up with bookings
Operating thresholds
| Metric | FY26 base | FY27 threshold |
|---|---|---|
| Pre-sales | $336.5m | ~$410.0m |
| Collections | $152.8m | >$205.0m |
| Statutory OCF | negative $46.1m | >$10.8m |
| Adjusted net debt/equity | 0.07x | ≤0.10x |
- Conversion. The collection and cash thresholds test whether growth is becoming self-funding rather than inventory-funded.
- Launch slate. Near-term launch evidence matters most at Borivali, Vasai, Andheri and Nepean.
- Combined pattern. Above-threshold collections, positive operating cash and leverage at or below 0.10x would strengthen the FY27 case.
Valuation
At $3.27, the stock sits near middle book and earnings sensitivities
Per-share sensitivity
Book at 1.0x
$2.6
Book at 1.25x
$3.2
Book at 1.5x
$3.8
Haircut book at 1.25x
$2.6
FY27 EPS at 16x
$3.2
FY28 EPS at 16x
$3.7
Sensitivities use attributable book value and consensus EPS, not gross development value.
- Current frame. $3.27 equals 1.28x FY26 attributable book and 16.6x average FY27 EPS.
- Book range. A 20% haircut to attributable book gives $2.04–$3.07 across 1.0x–1.5x; unhaircut book gives $2.56–$3.83.
- Earnings range. At 16x, average FY27 and FY28 EPS indicate $3.16 and $3.74; cash conversion determines how much weight they deserve.
What to watch
A larger pipeline and low leverage leave room; cash conversion and owner attribution remain the tests.
- 01By 31 March 2027, collections exceed $205.0 million and statutory operating cash flow exceeds $10.8 million.
- 02Adjusted net debt to equity stays at or below 0.10x as FY27 launches and inventory are funded.
- 03Nepean secures RERA approval and visible construction by 30 September 2026.
- 04The FY26 annual report reconciles $91.8 million of NCI and Sunteck's 50% Dubai economics to owner-attributable value.
This short sequence distills a guided study built chapter by chapter.
Compiled from the full report · 2026-07-22 · For information, not investment advice.