Suraj Estate Developers’ shares surged another 9.6% on Thursday, hitting a new all-time high of ₹630. Since June 4, the stock has risen by an impressive 94%.
Listed on Dalal Street in December last year, Suraj Estate’s shares initially performed modestly but started gaining momentum in April. The stock now trades 72% higher than its IPO price of ₹360.
Domestic brokerage firm Nuvama Professional Clients Group sees even more potential for Suraj Estate. They gave the stock a ‘buy’ rating on Wednesday with a target price of ₹757, suggesting a 32% upside from its previous closing price.
Suraj Estate is valued at a 40% premium to its FY26 estimated net asset value due to its extensive land reserves and ability to add new projects in key areas of South Central Mumbai, including Dadar, Prabhadevi, Mahim, Matunga, and Parel. The company has completed over 42 projects covering more than 1 million sq. ft. of saleable area.
The brokerage is optimistic about Suraj Estate’s future growth due to its expertise in redeveloping tenanted properties, high-quality offerings, a strong launch pipeline, steady sales growth, industry-leading profit margins, and a solid financial position.
Nuvama expects Suraj Estate to launch 0.8 million sq. ft. of new projects worth ₹4,652 crore across 17 residential developments from FY25 to FY28. They project a 49.2% annual growth rate in pre-sales, reaching ₹1,605 crore by FY27.
On the commercial side, Suraj Estate has ongoing projects with a total value of ₹197 crore, expected to be completed by FY25. A new commercial project worth ₹549 crore is slated for delivery in FY26.
With substantial land holdings and minimal need for additional investments, Suraj Estate plans to cover construction costs through project collections and reduce net debt from ₹315 crore in FY24 to ₹145 crore by FY27. Strong project launches and sales growth are expected to drive significant increases in collections and cash flows over the next few years.
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