Rally in this multibagger realty stock may continue as brokerages have 'Buy' tag
Premium- The brokerages have maintained buy rating on the multibagger stock that has rallied over 151% in a year
Realty firm Macrotech Developers reported 51% growth in its sales booking to record ₹9,024 crore in the last fiscal on better demand for its residential properties. The company also clocked record breaking performance with sales of over ₹14,000 crore for FY22.
“We believe that the sales were largely sustenance driven with no major launches during the quarter and the company has achieved its FY22 sales guidance of ₹90 bn. Considering the strong launch pipeline and momentum in sustenance sales, we estimate sales bookings of ₹110 bn in FY23E and Rs119.0bn in FY24E," analysts at ICICI Securities said.
The brokerage house has upgraded its rating on the multibagger stock with a revised target price of ₹1,348 per share (earlier Rs1,304). Macrotech shares have surged over 151% in a year's period. Though, key risks are a demand slowdown in the MMR market and rising interest rates in India, as per ICICI Securities.
“UK's investments also did well with a further ₹17 bn in sales during 4Q, helping part pre-payment of the associated bond. Strong housing demand and new project acquisitions are likely to help drive double-digit sales growth for Lodha," said Jefferies in a note. The brokerage has maintained Buy rating on the realty stock with a target price of ₹1,475.
While Lodha is on a project addition path, Jefferies believes that the company's net-debt may still decline in FY23, helping the growth-deleveraging dynamic continue.
“Lodha management had expected land-transaction/warehousing deal monetisation to drive a strong 4Q. However, with no such deal announcements, we believe the 4Q performance is a reflection of the housing market strength and Lodha's own strong project pipeline," analysts at Jefferies stated in a note.
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The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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