Hold Macrotech Developers; target of Rs 1109: ICICI Securities

ICICI Securities research report on Macrotech Developers

Along expected lines, Macrotech Developers (LODHA) achieved strong Q4FY24 sales bookings of INR 42.3bn (up 40% YoY). Hence, the company has achieved FY24 sales bookings of INR 145bn, exactly in line with its FY24 sales booking guidance. With the recent equity raise of ~INR 33bn, LODHA has pared net debt to INR 30.1bn (net D/E of 0.1x). With a strong launch pipeline heading into FY25 and new FY24 project additions with GDV of INR 203bn, the company is targeting 20% sales booking CAGR over FY24-26E as well, implying FY26 sales bookings of INR 210bn, for which it intends to continue pursuing aggressive business development.

Outlook

Factoring in recent QIP and new land bank additions, we revise our TP to INR 1,109 (from INR 1,013) based on 50% premium to FY24E NAV of INR 739/share. Maintain HOLD. Key upside risk is higher-than-expected price growth; and downside risk is a slowdown in Mumbai market volumes

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Macrotech Developers - 08042024 - icici