Nomura has initiated a "Buy" rating on Macrotech Developers stock with a target price of Rs 1,600 per share, citing solid earnings visibility supported by effective capital allocation strategies. The brokerage highlighted visible re-rating triggers and expects pre-sales growth at a 20 percent CAGR over FY25-26.
Additionally, Macrotech has ample potential to exceed its business development goals, ensuring sustained future growth, Nomura noted. The Palava project, on the cusp of infrastructure upgrades, is expected to benefit from both volume and price growth, it said.
Currently, Macrotech shares trade at 32x its 2025 EV/EBITDA. However, potential risks include a slowdown in the residential market and delays in infrastructure upgrades around Palava, flagged Nomura.
Macrotech Developers is a property development company, primarily involved in the development of commercial, residential and mixed-use properties, as well as the construction of integrated communities.
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The realty firm recently announced that it is planning to acquire 100 percent equity stake in two companies — Opexefi Services Private Ltd and One Box Warehouse Private Ltd — through executed Share Purchase Agreements (SPAs). The acquisitions, valued at Rs 46.7 crore and Rs 49 crore, respectively, will bring both companies under Macrotech's control, making them wholly owned subsidiaries.
Opexefi Services, established in December 2018, and One Box Warehouse, incorporated in October 2023, are both engaged in developing logistics parks and warehouses. Despite their involvement in the logistics and warehousing sector, neither company has reported any business operations or turnover in the past three years.
In the previous session, Macrotech Developers shares closed around 3.4 percent higher at Rs 1,238 on NSE. The stock has rallied 17 percent so far this year, outperforming Nifty's returns of 14 percent. In the past 12 months, the counter has zoomed 59 percent. In comparison, Nifty rose 28 percent during this period.
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