This Midcap Real Estate Sector Stock Set To Rally, ICICI Securities Assigns Buy For 26% Upside

Leading brokerage firm ICICI Securities has placed a "buy" on Macrotech Developers Limited with a target price of Rs 1,304 per share. If you buy the stock at the current market price, it is likely to give 26% return. Macrotech Developers is a midcap Real Estate sector company having a market capitalisation of Rs 49,860.43 crore.

Stock Outlook & Returns

The Current Market Price (CMP) of Macrotech Developers stood at Rs 1,035 apiece on NSE. The stock recorded its 52 week high on 2 February 2022 at Rs 1,392 apiece. While its 52-week low was recorded on 26 May 2022 at Rs 814.20 apiece. 

It was listed on 19 April 2021. The stock in its listing has given 122.46% multibagger returns. The stock has fallen 3.4% in the last 1 week and 2.03% in the last 1 month, respectively. However, it grew by 5.61% in the last 3 months. It has given 17.01% negative return in the last 1 year. 

On track to exceed FY23 sales guidance, buy for Rs 1,304 target price

According to the brokerage, Macrotech Developers (LODHA) achieved its best ever October-December sales bookings in Q3FY23 worth Rs30.4bn (Isec estimate of Rs29.0bn) which was driven by a combination of monetization of ready/completed inventory and new launches.

"The company has given FY23 sales booking guidance of Rs115bn (Isec estimate of Rs110bn) and we believe that the company is on track to exceed its sales guidance given that the company has already achieved 9MFY23 sales bookings of Rs90.4bn (79% of FY23 guidance). The company's India business net debt reduced by Rs7.5bn QoQ to Rs80.4bn as of Dec'22. Over the medium term, as the company targets further growth in annual sales bookings, a strong business development pipeline (company has added projects with GDV of Rs178.0bn in 9MFY23) and expansion into Pune and Bengaluru markets remains key," the brokerage has said.

It added, "We retain our BUY rating with an unchanged target price of Rs1,304/share. Key risks are demand slowdown in MMR market and rising interest rates."

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. 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.