Chambal Fertilisers and Sunteck Realty: Weekly Recommendations

The two stocks recommended by SMC Global Securities’ Research Team this week are Chambal Fertilisers & Chemicals and Sunteck Realty. These two stocks have shown great potential with positive financial estimates for the next financial year. So, let’s go through the details of the two stock recommendations for the period between June 16, 2025 and June 20, 2025.

Chambal Fertilisers & Chemicals Limited

Chambal Fertilisers & Chemicals Limited share price is ₹548.95 (as on June 13, 2025) and its target price is set at ₹669 with an upside potential of 22%.

Chambal Fertilisers & Chemicals Limited: Investment Rationale

• Chambal Fertilisers & Chemicals manufactures ammonia, urea, pesticides, and other products for farming and other agricultural applications. The company also provides consulting services to farmers on their seeding programs.
• It accounts for nearly 15% of the total Urea produced in the country. The company has a vast marketing network comprising 15 regional offices, 2,200 dealers, and 22,000 village-level outlets.
• The company is setting up a Technical Ammonium Nitrate plant at its existing plant site at Kota, Rajasthan, for the manufacture of 2,40,000 MTPA of Technical Ammonium Nitrate (TAN), which also includes a Weak Nitric Acid (WNA) plant with a manufacturing capacity of 2,10,000 MTPA.
• According to the company, the plant is progressing in line with the timelines. It has already spent about ₹650 crores out of the total estimated cost of ₹1,645 crores.

• According to the management, its joint venture IMACID performing well with higher production and better margins. IMACID is increasing its phosphoric acid capacity from about 5 lakh metric tons to 7 lakh metric tons, and this should be available in the time frame of 2027.
• In FY2025, it introduced 12 new Crop Protection Chemicals (CPC) products primarily comprising weedicides. With this, its CPC product portfolio comprises 64 products of distinct chemistries covering fungicides, weedicides, and insecticides, which have been well accepted by farmers across India in its territory.
• Currently, it is working on 18 new products which shall be introduced in Kharif and Rabi. It also plans to launch Hybrid variety Seeds in Q1 FY 25-26.
• The company and TERI, the Energy and Resources Institute, entered into an agreement for research for advanced and sustainable agricultural solutions. Together, they would research to develop new products. The IP rights would be jointly owned between CFCL and TERI, and Chambal will have exclusive commercial rights globally on the products that are developed over a period of the next five years.
• Its Seed-to-Harvest program is playing a significant role in strengthening and expanding its relationships with both the farmer and channel partners. During the year, it conducted over 9,000 meetings, 11,825 demos, and collected 105 lakh soil samples. The program is being scaled up with digital intervention in newer locations.

Chambal Fertilisers & Chemicals Limited: Shareholding Pattern

Promoters’ shareholding is highest in Chambal Fertilisers & Chemicals Limited at 60.4%.

Chambal Fertilisers & Chemicals Limited: Valuation

Chambal Fertilisers & Chemicals has strong positioning with 15% of the total Urea produced in the country, with a vast marketing network. Its strategic focus on creating partnerships and alliances is enabling the company to introduce better chemistries and increase the width of offerings in its channel and thus resulting in business growth.

Thus, it is expected that the stock may see a price target of ₹669 in 8 to 10 months’ time frame on a year average P/BVx of 2.72x and FY26 BVPS of ₹245.90.

Chambal Fertilisers & Chemicals Limited: Risk

• Government’s Policy and Subsidy Payout
• Global Uncertainties

Sunteck Realty Limited

Sunteck Realty share price is ₹447 (as on June 13, 2025) and its target price is set at ₹555 with an upside potential of 24%.

Sunteck Realty Limited: Investment Rationale

• Sunteck Realty Limited (SRL) is one of India’s leading Luxury real estate developers. It differentiated its projects under six brands – ‘Signature’: Uber luxury residences, ‘Signia’: Ultra luxury residences, ‘Sunteck City’ & ‘Sunteck Park’: Premium luxury residences, ‘Sunteck Beach Residences’: Marquee Luxury Destination, ‘Sunteck World’: Aspirational luxury residences, ‘Sunteck’: Commercial & Retail developments.
• The company has been a trendsetter in creating iconic destinations such as the flagship project, Signature Island at Bandra Kurla Complex (BKC), Sunteck City in Oshiwara District Centre (ODC), Goregaon and SunteckWorld at Naigaon – the largest township of MMR’s Western Suburbs.
• SRL has an immaculate track record of having one of the lowest net Debt/Equity ratios, financial prudence, and sustainable growth. The company focuses on a city-centric development portfolio of about 52.5 million square feet spread across 32 projects.
• It has reported record-breaking performance in FY25, with the highest-ever quarterly pre-sales of ₹870 crores in Q4 and full-year pre-sales surpassing ₹2,500 crores, up 32% YoY. Growth was broad-based, with significant contributions from Uber-Luxury Mumbai projects, boosting margins.

• Net GDV stood at ₹40,000 crores, almost three times FY22 levels. Operating revenue rose 51% YoY to ₹853 crores, while EBITDA increased 58% to ₹186 crores, with margins improving steadily across quarters to 33% in Q4.
• Net profit more than doubled to ₹150 crores, reflecting a 112% YoY growth. Collections remained stable at ₹1,255 crores, and net operating cash flow surplus stood at ₹374 crores.
• On the development front, it has a strong project pipeline lined up for FY26, with several high-value launches planned. Key among them is the formal launch of Sunteck Nepean Sea Road with a GDV exceeding ₹5,000 crores.
• Other major launches include one tower at 5th Avenue, ODC Goregaon West (GDV > ₹1,500 crores), a new tower at Sunteck Skypark (GDV ~₹700 crores), 1-2 towers at Sunteck Beach Residences, Vasai (GDV ₹400-450 crores), and a new phase at Sunteck World, Naigaon (GDV of ₹350 crores).
• Moreover, the Bandra redevelopment project is nearing acquisition completion, with approvals underway, and is expected to launch by late FY26 or early FY27, although not factored into current GDV guidance.
• Additionally, the company is advancing plans for a premium Dubai project near the Dubai Mall, with a launch targeted for late FY26 or early FY27. The management of the company remains cautious and focused on approvals and designs to optimize the product mix.

Sunteck Realty Limited: Shareholding Pattern

In the overall shareholding of Sunteck Realty, promoters have the highest shareholding at 63.28%.

Sunteck Realty Limited: Valuation

The company maintained a strong balance sheet with a net cash surplus of ₹125 crores and an improved net debt-to-equity ratio of -0.04x. FY25 Cash Flow ROCE was 16%, with a 3-year weighted average of 20%.

The management of the company remains confident of sustaining growth with higher margins in FY26. The strategic focus remains on value-accretive project additions, velocity of sales, and margin expansion.

Thus, it is expected that the stock may see a price target of ₹555 in 8 to 10 months’ time frame on an expected P/BV of 2.30x and FY26 BVPS of ₹241.11.

Sunteck Realty Limited: Risk

• High commodity prices
• Economic Slowdown

Conclusion

These two stocks, one from the chemical sector and other from the real estate sector can reach their target price in the coming 8 to 10 months. However, it is always better if you do your analysis before investing and set a stop-loss target. To keep track of your invested stocks, open demat account with SMC Global Securities and invest on the go.

Reference:
https://www.smctradeonline.com/research/wise-money/241

Author: All Content is verified by SMC Global Securities.