Sunteck Realty (SUNTECK)

FairStock Score: 34/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 112.73% and profit growth of 36.92% demonstrate strong project momentum.
• Low debt/equity of 0.17 provides a conservative balance-sheet cushion in a cyclical sector.
• Promoter holding of 63.30% aligns management interests with public shareholders.
• Piotroski F-Score of 7/9 and PEG of 0.41 suggest improving fundamentals and reasonable growth pricing if sustained.

Concerns

• ROE of 2.23% and ROCE of 6.28% are weak, showing poor capital efficiency for a business trading at 2.46 times book.
• P/E of 30.76 offers little margin of safety, especially as real estate earnings are lumpy and cyclical.
• Negative free cash flow indicates accounting profits have not yet been converted into cash.
• Dividend yield of only 0.37% gives shareholders negligible compensation while waiting.

AI Analysis

At ₹355.70, Sunteck Realty is a real estate developer, and I must apply a different lens than I would for a consumer brand. The headline numbers look exciting—sales up 112.73%, profits up 36.92%—but I do not yet see a wonderful business. Return on equity is only 2.23% and ROCE just 6.28%; that tells me this sector consumes enormous capital and earnings are lumpy. I would rather pay a fair price for a good business than a high price for an improving cyclical. The balance sheet is a plus: debt/equity of 0.17 is conservative, and promoter holding of 63.30% is reassuring. The FairStock score of 44/100 is mixed, which matches my caution. Piotroski score of 7/9 and PEG of 0.41 also give me some comfort that the market is not ignoring the growth. Yet at a P/E of 30.76, I am asked to pay ₹30.76 for every ₹1 of current earnings. Book value of ₹144.59 is respectable, but price is 2.46 times book. If the business earns such thin returns, that premium is not justified unless management can convert growth into cash and higher ROE. The reported free cash flow is negative, which warns me that accounting profits have not yet materialised as cash; in real estate, that is normal during project development, but it means execution risk is real. The dividend yield of 0.37% is almost nothing, so I cannot wait for a cheque. Sunteck is a capital-intensive, project-driven, high-growth cyclical. I would only consider it if growth continues for several years, cash conversion turns positive, and the price gives a margin of safety. Right now, it is interesting but not cheap enough for my circle of competence.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer