Buy Macrotech Developers; target of Rs 1249: HDFC Securities

HDFC Securities is bullish on Macrotech Developers has recommended buy rating on the stock with a target price of Rs 1249 in its research report dated April 24, 2023.

Broker Research

April 25, 2023 / 14:45 IST

Buy

26 Aug, 2025 12:21

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HDFC Securities' research report on Macrotech Developers

Macrotech Developers Ltd (MDL) reported its highest-ever annual presales of 9.3msf (+16% YoY), valued at INR 120bn (+33% YoY), beating its own guidance of INR 115bn. This was on the back of robust launches of 10.5msf (+81% YoY). For FY24, MDL is expecting INR 145bn in presales (+20% YoY), with INR 7-10bn coming from two pilot projects in Bengaluru, INR 20+bn from Pune and the rest from MMR. This 20% growth in presales will be driven by 5-6% growth in price (8% growth seen in FY23) and the rest from higher footfalls and conversion. The overall conversion rate was 7.5% in FY23 (6.8% in FY22). Presales in Township are strong and were INR 23bn (+16% YoY). This was on the back of a price increase of 5.5% and a higher conversion rate of 10%. MDL targets to achieve an overall INR 210bn of annual presales by FY26. The net debt fell short of its target and FY23 ended at INR 70bn, mainly on the back of robust BD activity. It added INR 198bn worth of GDV in FY23 and aims to add more than INR 175bn GDV in FY24, mostly via the JDA route (the current mix has 40% JDA project).

Outlook

We reiterate BUY with an unchanged SOTP valuation of INR 1,249/sh.

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