Large Cap Stock Fixed Record For Dividend, Scrip Up 67.87% In 3 Months, Buy, Says Motilal Oswal

Broking firm Motilal Oswal Financial Services retains 'Buy' call on Macrotech Developers Ltd. with a target price of Rs 775 apiece. Given the target price, the stock is likely to give 18% if purchased at the current market price.

Microtech Developers is a large cap Real Estate sector company. It is among the largest real estate developers in India with a presence in MMR (Mumbai Metropolitan Region) and Pune markets It has a market valuation of Rs 64,387.39 Crore.

Record Date

Recently, on Jun 28, 2023, the company fixed the record date for the dividend for the financial year 2022-23. The said dividend is subject to approval by the Members at the 28th AGM.

"The Company has fixed Friday, September 8, 2023 as Record date for determining the entitlement of members to the dividend for the financial year ended March 31, 2023, if approved by the Members at the 28th AGM. The payment of dividend will be subject to deduction of tax at source," the company said in an exchange filing.

Valuation and view

Motilal Oswal Financial Services said, "We retain our pre-sales and P&L estimates for FY24/FY25. As the company continues to successfully implement its market share gain strategy with focused project additions, faster turnarounds and healthy sales velocity, we expect the strong pre-sales growth rate to sustain over the long term."

It added, "Given the recent spike in real estate stock prices, our preference remains inclined towards players with an ability to sustain pre-sales growth rate over a medium-term along with healthy profitability. We reiterate our BUY rating on the stock with our unchanged SoTP-based TP of INR775 indicating a potential upside of 21%."

Stock Outlook

The last traded share price of Macrotech Developers is Rs 667.95 apiece, up 0.29% from its current level. It traded the 52 week high on Jun 14, 2023, at Rs 708.75 apiece and 52 week low on Feb 24, 2023, at Rs 355.50 apiece, respectively.

The stock surged 2.62% in 1 week. It gave 29.39% positive return in 1 month and 67.87% in 3 months, respectively. It gave 28.32% positive return in 1 year and 95.31% positive return in 2 years.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal Financial Services. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.