Macrotech Developers - FY24 Lays Strong Foundation; Balance Sheet Strength Constructive: ICICI Securities

ICICI Securities Report

Along expected lines, Macrotech Developers Ltd. achieved strong Q4 FY24 sales bookings of Rs 42.3 billion (up 40% YoY). Hence, the company has achieved FY24 sales bookings of Rs 145 billion, exactly in line with its FY24 sales booking guidance.

With the recent equity raise of ~Rs 33 billion, Macrotech Developers has pared net debt to Rs 30.1 billion (net debt/equity of 0.1 times). With a strong launch pipeline heading into FY25 and new FY24 project additions with gross development value of Rs 203 billion, the company is targeting 20% sales booking compound annual growth rate over FY24-26E as well, implying FY26 sales bookings of Rs 210 billion, for which it intends to continue pursuing aggressive business development.

Factoring in recent QIP and new land bank additions, we revise our target price to Rs 1,109 (from Rs 1,013) based on 50% premium to FY24E net asset value of Rs 739/share.

Maintain Hold.

Key upside risk is higher-than-expected price growth; and downside risk is a slowdown in Mumbai market volumes.

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