Motilal Oswal has given Buy recommendation for Macrotech Developers recommended buy rating on the stock with a target price of Rs 1570 in its research with a target price of Rs. 1570 in its research report issued on Jul 26, 2022
Motilal Oswal’s research report on Macrotech Developers
Macrotech Developers (LODHA) reported its best ever first quarter pre-sales with bookings of INR28b. Of this, residential segment contributed INR24b (down 22% QoQ), while land sales and others accounted for the rest INR4b. Sales volume, however, dipped 27% QoQ to 2.2msf while blended realization improved 6% QoQ. LODHA raised prices by 1.5-2.0% QoQ at the portfolio level. The company launched 2.7msf of projects in 1QFY23 and further expects to launch 8.5msf in the remainder of FY23, taking the cumulative launches to 11.2msf v/s 8.7msf guided in 4QFY22. Additions included 2.1msf from new projects with saleable area of 5.1msf and GDV of INR62b. Management reiterated its FY23 pre-sales guidance of INR115b (+27% YoY), of which residential will contribute INR105b (+24% YoY).
At CMP, the stock trades at 1.1x P/NAV indicating limited premium for growth that the company will achieve beyond FY23E. Maintain BUY with an unchanged TP of INR1,570, implying an upside potential of 39%.