Suraj Estate Developers share price target 2024, 2025, 2026, 2027, 2030 prediction
Suraj Estate Developers Limited (SEDL) is a Mumbai-based real estate developer that focuses on the luxury and commercial segments in the South Central Mumbai region. The company has been in the business since 1986 and has completed 42 projects covering 10 lakh sq ft. It also has 13 ongoing projects, 16 upcoming projects, and land reserves of 10,359.77 sq mtr. In this article, we will look at Suraj Estate Developers share price target 2024, 2025, 2026, 2027, 2030.
The company launched its initial public offering (IPO) on December 18, 2023, and raised Rs 400 crore by issuing 1.11 crore shares at a price band of Rs 340-360 per share. The IPO was subscribed 16.36 times and the shares will be listed on BSE and NSE on December 26, 2023.
The Suraj Estate Developers IPO is predicted to have a tepid listing around the IPO price of Rs 360.
In this blog post, we will analyze the Suraj Estate Developers Stock from various perspectives, such as its competitors, growth opportunities, SWOT analysis, financials, and key things to watch out for. We will also provide our opinion on whether the stock is worth investing in or not.
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Page Contents
Suraj Estate Developers share price target 2024, 2025, 2026, 2027, 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | ₹400 | ₹465 | ₹433 |
| 2025 | ₹500 | ₹581 | ₹541 |
| 2026 | ₹625 | ₹727 | ₹676 |
| 2027 | ₹781 | ₹908 | ₹845 |
| 2028 | ₹977 | ₹1,135 | ₹1,056 |
| 2029 | ₹1,221 | ₹1,419 | ₹1,320 |
| 2030 | ₹1,526 | ₹1,774 | ₹1,650 |
| 2031 | ₹1,907 | ₹2,217 | ₹2,062 |
| 2032 | ₹2,384 | ₹2,772 | ₹2,578 |
| 2033 | ₹2,980 | ₹3,465 | ₹3,222 |
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Suraj Estate Developers share price target 2024
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | ₹400 | ₹465 | ₹433 |
In 2024, analysts projected Suraj Estate Developers share price target to range from a minimum of ₹400 to a maximum of ₹465, with an average target of ₹433.
Suraj Estate Developers share price target 2025
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2025 | ₹500 | ₹581 | ₹541 |
For the year 2025, analysts anticipated Suraj Estate Developers share price target to be in the range of ₹500 (minimum) to ₹581 (maximum), with an average target of ₹541.
Suraj Estate Developers share price target 2026
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2026 | ₹625 | ₹727 | ₹676 |
In 2026, Suraj Estate Developers share price target was estimated to have a minimum target of ₹625, a maximum target of ₹727, and an average target of ₹676.
Suraj Estate Developers share price target 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2030 | ₹1,526 | ₹1,774 | ₹1,650 |
For the year 2030, analysts expected Suraj Estate Developers share price target to fall within the bracket of ₹1,526 (at the lower end) to ₹1,774 (at the upper end), while setting an average target of ₹1,650.
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Competitors of Suraj Estate Developers Stock
The real estate sector in India is highly competitive and fragmented, with many players operating in different segments, regions, and price points. Suraj Estate Developers operates mainly in the South Central Mumbai region, which is a prime location for residential and commercial properties. The company faces competition from both local and national players, such as:
- Oberoi Realty Limited
- Sunteck Realty Limited
- Keystone Realtors Limited
- Shriram Properties Limited
- Mahindra Lifespace Developers Limited
- D B Realty Limited
- Hubtown Limited
According to the company’s RHP, these are some of the listed peers that Suraj Estate Developers has referenced for comparison. However, there may be other unlisted or smaller players that also compete with the company in the same or adjacent markets.
The table below shows the key financial and valuation metrics of Suraj Estate Developers and its listed peers, based on the latest available data:
| Company | Revenue (Rs Cr) | PAT (Rs Cr) | EPS (Rs) | P/E Ratio | P/B Ratio | ROE (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|
| Suraj Estate Developers | 306 | 32 | 10.10 | 35.64 | 3.30 | 58.18 | 21.93 |
| Oberoi Realty | 1,583 | 546 | 17.68 | 80.76 | 2.46 | 3.05 | 4.62 |
| Sunteck Realty | 1,019 | 211 | 10.96 | 36.48 | 1.58 | 4.34 | 5.65 |
| Keystone Realtors | 1,050 | 90 | 2.23 | 51.12 | 1.09 | 2.13 | 2.64 |
| Shriram Properties | 1,112 | 15 | 0.69 | 27.54 | 1.00 | 3.63 | 3.83 |
| Mahindra Lifespace | 1,017 | 67 | 8.71 | 77.01 | 2.86 | 3.70 | 4.29 |
| D B Realty | 1,057 | -1,020 | -33.33 | – | 0.24 | – | – |
| Hubtown | 1,110 | -1,029 | -33.54 | – | 0.19 | – | – |
As we can see from the table, Suraj Estate Developers has the highest ROE and ROCE among its peers, indicating a high return on shareholders’ capital and efficient use of company resources. It also has a reasonable P/E and P/B ratio, compared to its peers’ median and average of 45.8 and 2.9, respectively. However, it also has a high debt-to-equity ratio of 8.3, which may pose a risk to its financial stability.
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Growth Opportunity for Suraj Estate Developers Stock
India’s real estate market is poised for a significant upswing in the post-pandemic era, a trend that bodes well for Suraj Estate Developers. This optimistic outlook is fueled by several key drivers:
- Enhanced Housing Demand: A combination of increasing incomes, urban migration, and the trend towards smaller family units is creating a surge in housing needs.
- Financial Accessibility Boost: The ease of obtaining home loans, coupled with lower interest rates and government-backed initiatives like PMAY and CLSS, is making home ownership more accessible and appealing.
- Corporate Real Estate Demand: As industries such as IT/ITeS, BFSI, e-commerce, and co-working spaces expand in a rebounding economy, there’s a heightened demand for office spaces.
- Evolving Home Preferences: The ongoing shift to remote work and online learning is sparking a preference for homes that are spacious, well-designed, and equipped with modern amenities.
- Shift Towards Reliable Developers: Today’s consumers favor developers with a reputation for timely project completion, clear titles, and exceptional post-sales services.
According to ICRA20’s insights, the residential sector experienced a robust revival in FY23, with a 44% year-on-year surge in sales. This momentum is expected to persist into FY24, supported by improved affordability and consumer confidence.
Furthermore, JLL21 reports an impressive recovery in India’s office market, with a projected net absorption of 28-30 million sq ft by 2023’s end, and 32-35 million sq ft by 2024. This growth is predominantly driven by sectors like IT/ITeS and BFSI.
Suraj Estate Developers: Poised for Growth
Suraj Estate Developers stands to greatly benefit from these market dynamics. With its stronghold in South Central Mumbai—a hub for both residential and commercial real estate—the company is ideally positioned to leverage these opportunities. Suraj Estate Developers’ diverse project portfolio spans across luxury and commercial segments, catering to a wide range of consumer needs.
The company’s ongoing and upcoming projects, along with its land reserves, ensure a sustainable growth trajectory. Embracing an asset-light model, the company smartly navigates the sector by acquiring land through strategic agreements and entrusting construction to third parties, minimizing capital expenditure and operational risks.
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SWOT Analysis of Suraj Estate Developers Stock
A SWOT analysis is a framework that helps in evaluating the strengths, weaknesses, opportunities, and threats of a company or a business. Here is a SWOT analysis of Suraj Estate Developers Stock:
Strengths
- Strong brand and reputation in the South Central Mumbai region, with over 36 years of experience and expertise in the real estate sector.
- Diversified portfolio of projects across the residential and commercial segments, with a focus on the value luxury and luxury segments, which have higher margins and demand.
- Asset-light business model, with low capital expenditure and execution risks, as the company acquires land parcels through development agreements or outright purchases, and outsources construction services to third-party contractors.
- High return ratios, with a ROE of 58.18% and a ROCE of 21.93% as of FY23, indicating a high return on shareholders’ capital and efficient use of company resources.
- Healthy financial performance, with a revenue CAGR of 12.9% and a PAT CAGR of 128.4% from FY21 to FY23, and a strong EBITDA margin of 49.4% in FY23.
Weaknesses
- High debt-to-equity ratio of 8.3 as of FY23, which may pose a risk to the company’s financial stability and increase its interest burden.
- Dependence on third-party contractors for construction services, which may expose the company to quality concerns, delays, cost escalations, and disputes.
- Dependence on the South Central Mumbai region for the majority of its revenue and projects, which may limit its growth potential and expose it to regional risks, such as regulatory changes, market fluctuations, and competition.
- Seasonality and cyclicality of the real estate sector, which may affect the demand and pricing of the company’s projects, as well as its cash flows and profitability.
Opportunities
- Growing demand for housing in India, driven by rising income levels, urbanization, nuclearization of families, easier access to home loans, lower interest rates, and various government incentives and schemes.
- Increasing demand for office space in India, especially from the IT/ITeS, BFSI, e-commerce, and co-working segments, as the economy recovers and businesses expand.
- Growing preference for spacious, well-designed, and quality homes with modern amenities, as people spend more time at home due to work-from-home and online education trends.
Threats of Suraj Estate Developers Stock
Every business faces some challenges and risks that may hamper its growth and performance. Suraj Estate Developers is no exception, as it operates in a highly competitive and regulated real estate sector in India. Some of the major threats of Suraj Estate Developers Stock are:
- Regulatory and legal risks, such as changes in the development control regulations, environmental laws, land acquisition norms, taxation policies, and RERA compliances, which may affect the company’s project approvals, costs, timelines, and profitability.
- Economic and market risks, such as fluctuations in the demand and supply of real estate, price volatility, interest rate movements, inflation, and macroeconomic factors, which may affect the company’s sales, revenues, margins, and cash flows.
- Operational and execution risks, such as delays in project completion, cost overruns, quality issues, litigation, and disputes with customers, contractors, landlords, tenants, and authorities, which may affect the company’s reputation, customer satisfaction, and legal liabilities.
- Competition and concentration risks, such as the presence of many players in the same or adjacent markets, offering similar or better products and services, which may affect the company’s market share, pricing power, and customer loyalty. Moreover, the company’s dependence on the South Central Mumbai region for the majority of its revenue and projects may limit its growth potential and expose it to regional risks.
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Final Thoughts on Suraj Estate Developers share price target 2024, 2025, 2026, 2027, 2030
Suraj Estate Developers, a fresh face in India’s stock market since its IPO on December 20, 2023, is an intriguing option for investors. This Mumbai-based real estate developer, specializing in the luxury and commercial sectors in South Central Mumbai, boasts a robust brand presence, a diverse project portfolio, an efficient asset-light business model, solid financials, and high return ratios. The company’s pipeline of projects and land reserves hint at scalable growth.
The firm is navigating an expanding Indian real estate market, anticipated to experience strong demand for housing and office spaces. This demand is spurred by factors like income growth, urbanization, lower interest rates, government incentives, and evolving consumer preferences. Suraj Estate Developers’ strategic positioning in South Central Mumbai, a prime real estate locale, amplifies its potential to harness these growth opportunities.
However, the company confronts several challenges including regulatory and legal uncertainties, economic fluctuations, operational hurdles, and competitive pressures. Notably, its high debt-to-equity ratio raises concerns about financial stability and interest liabilities.
Currently, the stock is priced at Rs 360 per share, aligning with the upper limit of its IPO pricing. Its P/E ratio, at 35.64, is marginally below the sector’s median (45.8) and average (2.9). The P/B ratio stands at 3.30, surpassing the sector’s median (1.6) and average (1.4). These metrics suggest a fair, though not inexpensive, valuation.
For long-term investors focused on the real estate sector, Suraj Estate Developers presents a viable opportunity, blending growth potential with reasonable valuation. However, it’s crucial for investors to stay cognizant of the inherent risks and actively track the company’s performance. Short-term investors or those seeking immediate gains might find limited appeal in this stock, given its current positioning near the IPO price and limited short-term growth prospects.
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FAQs on Suraj Estate Developers share price target 2024, 2025, 2026, 2027, 2030
What is Suraj Estate Developers share price target 2024?
In 2024, analysts forecasted that Suraj Estate Developers share price target would span from a minimum of ₹400 to a maximum of ₹465, with an average target set at ₹433.
What is Suraj Estate Developers share price target 2025?
In 2025, analysts expected Suraj Estate Developers share price target to fall within the range of ₹500 at the minimum to ₹581 at the maximum, while setting an average target of ₹541.
What is Suraj Estate Developers share price target 2026?
During 2026, Suraj Estate Developers share price target was approximated to have a minimum target of ₹625, a maximum target of ₹727, and an average target of ₹676.
What is Suraj Estate Developers share price target 2030?
In the year 2030, analysts anticipated that Suraj Estate Developers’ share price would range from ₹1,526 at the lower end to ₹1,774 at the upper end, with an average target established at ₹1,650.
