Buy Macrotech Developers; target of Rs 1625: Motilal Oswal

Buy

Motilal Oswal's research report on Macrotech Developers

In Q4FY25, pre-sales rose 14% YoY/7% QoQ to INR48.1b, while volumes grew 4% YoY/15% QoQ to 3.6msf. In FY25, pre-sales grew 21% YoY to INR176.3b, surpassing the guidance. For FY26, the company has guided for pre-sales of INR210b and volumes of 11msf. In Q4FY25, collections were up 26% YoY/3% QoQ to INR 44.4b (20% above our est.), while in FY25, collections increased 29% YoY to INR144.9b. In Q4FY25, OCF grew 13% YoY to INR23.2b. In FY25, the company reported 26% YoY growth in OCF to INR65.3b, supported by healthy collections. For FY26, the company has guided for OCF of INR77b. During the quarter, the company launched seven projects, covering a saleable area of 3.4msf with a GDV of INR33b. For the full year, it launched 9.8msf of projects with a GDV of INR137b across micro-markets. For FY26, the company has guided launches of 13.1msf with a GDV of INR188b across 17 projects.

Outlook

We use the DCF-based method for the ex-Palava residential segment and arrive at a value of ~INR529b, assuming a WACC of 12.5%. We roll forward our estimates and reiterate BUY with a revised TP of INR1,625.

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Macrotech Developers - 28042025 - moti