Buy Macrotech Developers, target price Rs 1275: ICICI Securities

ICICI Securities has buy call on Macrotech Developers with a target price of Rs 1275. The current market price of Macrotech Developers is Rs 1023.4.

Macrotech Developers, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 51392.60 Crore) operating in Real Estate sector.

Macrotech Developers key Products/Revenue Segments include Property Development, Land Development Rights, Rental Income, Other Operating Revenue and Building Materials for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1902.44 Crore, up 8.02 % from last quarter Total Income of Rs 1761.23 Crore and down -11.46 % from last year same quarter Total Income of Rs 2148.74 Crore. Company has reported net profit after tax of Rs 405.01 Crore in latest quarter.

The company’s top management includes Mr.Mukund Manohar Chitale, Mr.Abhishek Mangal Prabhat Lodha, Mr.Rajendra Narpatmal Lodha, Mr.Raunika Malhotra, Mr.Rajinder Pal Singh, Mr.Ashwani Kumar, Mr.Lee Polisano, Mr.Rajeev Bakshi, Ms.Harita Gupta. Company has MSKA & Associates as its auditors. As on 31-12-2022, the company has a total of 48 Crore shares outstanding.

Investment Rationale
The company had given FY23 sales booking guidance of Rs115bn and the brokerage believes that the company is on track to exceed its sales guidance given that the company has already achieved 9MFY23 salesbookings of Rs90.4bn (79% of FY23 guidance). The company’s India business net debt reduced by Rs 7.5bn QoQ to Rs80.4bn as of Dec’22. Over the medium term, asthe company targets further growth in annual sales bookings, a strong business development pipeline (company has added projects with GDV of Rs178.0bn in9MFY23) and expansion into Pune and Bengaluru markets remains key.