VP Rajesh presented his in-depth investment thesis on Sunteck Realty (NSE: SUNTECK) at Best Ideas 2017.
Sunteck Realty is a real estate developer offering ultra-luxury, luxury and premium residential housing primarily in BKC (Bandra-Kurla Complex) and ODC (Oshiwara District Centre, Goregaon West) in Mumbai, India. Current portfolio development potential stands at 23 million square feet, comprising of completed, on-going and yet-to-start projects across 25 projects. Of the total, 1.9 million square feet is completed and 2.4 million square feet is currently under progress; and 12.9 million square feet is in Mumbai. Key strategy has been to acquire land parcels at attractive locations directly and/or enter joint development partnerships (e.g., Jaipur and Dubai). At a recent price of Rs. ~210 per share, the market capitalization of SRL is Rs. ~1,340 crores (~$200 million) with an enterprise value of Rs. ~2,300 crores (~$340 million). V.P. Rajesh estimates intrinsic value as the sum of book value (Rs. ~280 per share) and the estimated NPV of future cash flows (Rs. ~210 per share), i.e., Rs. ~490 per share.
About the instructor:
V.P. Rajesh has been in the capital markets since 1991, first as an IT consultant (at Citicorp Overseas Software) and then as an Investment Banker for over 10 years specializing in mergers and acquisitions. During his banking career with J.P. Morgan Chase, Deutsche Bank, Piper Jaffray and Thomas Weisel Partners in New York and San Francisco, he focused on technology, media, telecom and healthcare sectors and completed transactions worth over $27 billion. V.P. relocated to India in July 2007 and started re-investing in the Indian stock market from March 2008 onward. He started Banyan Capital Advisors in New Delhi in November 2011 to manage outside capital using investment principles espoused by likes of Graham, Buffett, Munger, Klarman and Lynch. V.P. is an MBA from the University of Michigan’s Ross Business School with a distinction and has a B.E. (Hons.) degree from BITS, Pilani, India. He is also a Chartered Financial Analyst(CFA) from The CFA Institute, US. Besides investing, he is passionate about wines and food, is an avid reader, and a regular squash player. Lately, he is practicing yoga to maintain his equilibrium.
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