Buy Macrotech Developers; target of Rs 1530: Motilal Oswal

Motilal Oswal is bullish on Macrotech Developers recommended buy rating on the stock with a target price of Rs 1530 in its research report dated January 25, 2023.

Broker Research

January 29, 2023 / 18:02 IST

Motilal Oswal's research report on Macrotech Developers

LODHA reported its best-ever third quarter pre-sales with sales bookings of INR30b, up 16% YoY but down 4% QoQ and it was higher than our estimate of INR28b. For 9MFY23, bookings stood at INR90b, up 62% YoY, surpassing its FY22 sales and well on track to exceed its FY23 guidance of INR115b. Micro-market performance: Sales momentum sustained across the micromarkets in MMR, while contribution from Pune improved, on the back of a successful launch of a project in Kharadi. Overall, the company launched 2.3msf of projects in 3QFY23 and is expected to launch 4.2msf in 4QFY23 with a GDV potential of INR58b, indicating strong growth visibility for 4Q. Sales volume increased 4%/19% YoY/QoQ to 2.5msf, while blended realization rose 10% YoY. At a portfolio level, LODHA raised prices by ~5% on a YTD basis.

Outlook

At the CMP, the stock trades at 1.1x P/NAV, indicating limited premium assigned to growth beyond FY23. We reiterate our Buy rating on the stock.

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