Jan 9: Mumbai based Sunstar Realty Development Ltd (BSE: 535141) had risen more than 3% in morning trade on Monday on better earnings prospects this year. It has steadily climbed from Rs 15.15 levels at the end of December to 17/45 levels.
Recently, news about obtaining a construction project that was falsely circulated via mobile SMS was denied by the company.
The company is engaged in the business of real estate development and infrastructure executing contracts for various clients. The management team is led by Vijay Raman K R, director and a qualified chartered accountant. He has a good track record of delivering results on growth, revenue, operational performance and profitability. Others in the team include Lakshmi Chandra, Nitin Kishore Boricha, Sonal Bhat and Yogesh Kumar Rawal.
The company had reported a net profit of Rs 8.79 lakh for 2016-17 as against Rs 10.60 lakh for 2015-16. Total income fell from Rs 784.49 lakh in 2015-16 to Rs 430.05 lakh in 2016-17.
The company hasn’t distributed any dividend in the last financial in view of the requirements of cash for ongoing business.
In the near term, returns have risen to 17.96 while financial ratios present a mixed picture. Return on equity of 0.19%, assets of 0.16%, net profit margin of 2.86% are above industry average while liquidity and cash flow raises concern.
Technical View: RSI of 66 is bullish, MACD has witnessed a bullish crossover indicating buy and Average Directional Index of 27.74 denotes range bound trading.