The Residential and Commercial Projects industry in India is a booming sector, driven by rapid urbanization and economic growth. With an estimated market size of $1 trillion by 2030, the industry supports over 250 million square feet of annual construction, attracting both domestic and foreign investments.
With a market capitalization of Rs 1.23 lakh crore, the shares of Macrotech Developers Ltd were trading at Rs 1,248.15 per share, decreasing around 2 percent as compared to the previous closing price of Rs 1,275.65 apiece.
Brokerage target:-
Nomura, one of the well-known brokerages globally, gave a ‘Buy’ call on the real estate stock with a target price of Rs 1,600 apiece, indicating a potential upside of 28 percent from Monday’s price of Rs 1248.15 per share.
Target Rational:-
As per the brokerage, the company is showing solid earnings visibility supported by effective capital allocation strategies. The brokerage expects pre-sales growth at a 20 percent CAGR over FY25-26.
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Furthermore, the company recently stated that it intends to acquire a 100% ownership share in two firms, Opexefi Services Private Ltd and One Box Warehouse Private Ltd, through completed share purchase agreements (SPAs). The purchases, valued at Rs 46.7 crore and Rs 49 crore, respectively, would place both firms under Macrotech’s supervision, transforming them into wholly owned subsidiaries.
Financial performance:-
Analyzing the company’s financial condition, revenue ramped up by 76 percent from Rs 1,617 crore in Q1FY24 to Rs 2,846 crore in Q1FY25, during the same time frame net profit magnified significantly by 166 percent from Rs 179 crore to Rs 476 crore.
Future Plans:-
Macrotech Developers plans to launch 17 new housing projects worth Rs 12,000 crore in FY25, covering 10.1 million sq ft in key markets like MMR, Pune, and Bengaluru. This includes 10 new projects and 7 phases in existing ones, following a successful FY24 with launches worth Rs 18,000 crore.
The company remains optimistic about sustained housing demand, attributing it to high economic growth and a rising preference for homeownership. With sales bookings up 20% to Rs 14,520 crore in FY24, Macrotech targets Rs 17,500 crore in FY25, representing a 21% growth outlook.
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Company Profile:-
Macrotech Developers Limited develops real estate properties in India and the United Kingdom. The company’s portfolio includes housing developments, premium and luxury housing projects, and industrial and logistics park divisions.
Written by:- Abhishek Singh
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