Buy Suraj Estate Developers for 73% upside potential says Nuvama

Suraj Estate Developers has shown a good profit growth of 146.89% for the Past 3 years. The company has shown a good revenue growth of 20.63% for the Past 3 years. Company has a healthy Interest coverage ratio of 9.14. The company has an efficient Cash Conversion Cycle.

Nuvama has recommended a buy for the target price of ₹992 which is a 73% upside. The rationale is that Suraj Estate Developers  has i) a robust project lineup and a healthy launch pipeline, ii) leadership position in the redevelopment segment in South Central Mumbai, iii) strong cost advantage and a proven track record in redeveloping 33(7) projects, iv) a huge addressable market, and v) a healthy Balance Sheet with predictable cash flows. Nuvama is optimistic on SURAJEST’s growth story and has recommended ‘BUY’ with a revised TP of INR992, valuing the stock at 1.5x FY26E NAV.