Relationship of NIFTY 50 with SUNTECK REALTY

Relationship of NIFTY 50 with SUNTECK REALTY

Author – Sohaib Hussain Syed

 

Introduction: –

Sunteck Realty Limited is dedicated to bringing about a transformation in real estate in India. They have delivered edifices which have elevated living and business spaces in and around Mumbai. With every residential and commercial project added to their portfolio, they are perpetually learning and bettering  services and quality to not just meet but surpass the standards of excellence. As one of the leading real estate developers in Mumbai, we pride ourselves on exceptional construction timelines, stern adherence to quality standards, innovation, and attention to detail. This commitment has earned us the trust and goodwill of investors, partners, and customers.

 

Objective of the study: – To calculate the Beta of SUNTECK REALTY and its significance.

Views and Reviews: –

  1. KAMAL KHETAN (SUNTECK REALTY, Chairman): Chairman & Managing Director of Sunteck Realty Ltd, Mr. Kamal Khetan is a first-generation entrepreneur. Under his strong leadership and visionary approach, Sunteck Realty has become one of the top listed realty firms on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Before founding Sunteck Realty, Mr. Khetan had pioneered the concept of business centres in Bandra Kurla Complex (BKC), the city’s new financial epicentre, to service multinational corporations. Since the founding of Sunteck Realty, he has taken the Company to new heights through a strong strategic growth plan, widening its repertoire of its product portfolio and building a solid execution team that has helped the company to achieve products of best in standard quality & craftsmanship.He brings on board a unique vision, leadership style and expertise that has built a strong clientele, brand reputation, an experienced management team and handsome returns to shareholders. His strong business acumen and natural flair to sense opportunities in realty combined with a strong understanding of project finance has made the company stand out among its peers.

He has always advocated a business model of growing together with stakeholders such as customers, employees, shareholders, and communities. He is the founder trustee of ‘Sunteck Foundation’ which focuses on environment sustainability and social responsibility.He is an art collector and a fitness enthusiast. He has graduated in Engineering Electronics & Communication from Mangalore University. He is an Honorary Consul of the Hashemite Kingdom of Jordan in Mumbai, and is also associated with industry bodies such as Young Presidents’ Organization and FRICS (Fellow, Royal Institute of Chartered Surveyors). He is also the member of ASSOCHAM, IMC and MCHI-CREDAI.

 

 

  1. Board of Directors Report: Sunteck Realty expects its pre-sales to grow three-fold to Rs 5,000 crore by FY28 Re-defining luxury housing in India: The drivers promoting the sector’s expansion The luxury projects-focused realtor would close FY23 with around Rs 1,700 crore in pre-sales/bookings and a Rs 513 crore revenue on the balance sheet. City-based real estate player Sunteck Realty expects its presales to grow over three times to Rs 5,000 crore by FY28 as it launches three large luxury projects and completes the ongoing ones. The luxury projects-focused realtor would close FY23 with around Rs 1,700 crore in pre-sales/bookings and a Rs 513 crore revenue on the balance sheet. For the first nine months of FY23, its net income stood at Rs 29 crore, up from Rs 25 crore a year ago, on a revenue of Rs 314 crore. Accounting norms (IFRS) allow a developer to book revenue only from completed projects and not from pre-sales. Established in 2007, Sunteck delivered over 40 million sq ft across 30 projects under five brands — Signature, Signia, Sunteck City, Sunteck World and commercial & retail under Sunteck labels. All of its projects are in the Mumbai metropolitan region (MMR)

Data Collection: –

Historical data has been downloaded from 01/02/2023 to 31/01/2024 from www.nseindia.com, and the weekly returns of NIFTY 50 and SUNTECK are calculated from the same.

Y = a + b X

Here Y is the dependent variable (Weekly Returns of SUNTEK) and X is the independent variable (Weekly Returns of NIFTY 50)

SUNTECK REALTY Weekly Returns = -532.5200704 + 0.041904695 (NIFTY 50 Weekly Returns)

The above equation shows the relationship between Weekly Returns of SUNTECK REALTY and NIFTY 50.

Data Analysis: –

  • of Observations are 50.
  • R2 means (0.54) 54% of SUNTECK REALTY Weekly Returns is explained by NIFTY 50 Weekly Returns. The rest 46% are errors which are not considered by the model.
  • T stat for b & P value of it is 0.00, it is less than 0.05 which means that NIFTY 50 Weekly Returns are statistically significant at 5% level.
  • F = 54.0331 and P = 0.00 which is less than 0.05 that means the overall the model is statistically significant.

 

Conclusion: –

Beta (β) is 0.04, it is less than 1 which means that we should invest for long term.

 

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