Macrotech Developers Ltd, the largest real estate developer in India, showcased a hike of around 12% in its stock price on Monday as its shares ended at Rs 800 levels on Monday.
Over a month period, the stock showed a downside of approximately 22.2%. During the last year, the stock has moved down from Rs 1,127.50 to the current levels which is a 29% fall.
Macrotech Developers Ltd, the largest real estate developer in India, incorporated its operations in the year 1995. Its core business includes Residential Real Estate developments with a great degree of emphasis on affordable housing and housing plans for the middle class.
For the December quarter of FY23, the company reported a Consolidated Total Income of Rs 1,902.44 Crore, gaining 8.02 percent from the last quarter which was observed to be Rs 1,761.23 Crore.
The Consolidated Net Profit figures of the company have shifted from a loss of 931 Crore in the quarter ending September 2022 and thereby arrived in the green in the quarter ending December 2022 with profits being 405 crores.
The company witnessed an aggressive third quarter with sales of over Rs 3,000 crore and in a span of 9 months of the current fiscal year, it was able to achieve sales of 9,000 crores and pivot it to grow at a level of 11,500 crores. The sales bookings for the company rose by around 16 percent to Rs 3,035 crore in the last quarter.
Further, the company aims to cut its net debt by 40 percent, i.e., around Rs 5,000 crore by the end of December this year with the major focus and aid from the surplus cash flows from strong housing sales. The company is hoping to reduce debt further by Rs 1,000 crore by end of this fiscal year to about Rs 7000 crore.
Having its focus on the Mumbai Metropolitan Region (MMR) and the Pune markets, the company has recently tapped into the Bengaluru residential markets with one housing project and another one in the pipeline.
The company has a market capitalization of Rs 38,913 Crore. The promoters hold a 75 percent stake in the company. Further, the FIIs and DIIs have continuously increased their shareholdings in the company and currently hold 19.42% and 4.08% respectively.
JM Financial has a ‘Buy’ call on the stock with a target price of Rs 1,425 per share which shows an upside of around 78% from the current levels.
Written by Amit Madnani
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