Macrotech Developers Q1 Review - Strong Start To FY25; On Track To Meet Annual Guidance: ICICI Securities

ICICI Securities Report

Along expected lines, Macrotech Developers Ltd. achieved strong Q1 FY25 sales bookings of Rs 40.3 billion (up 20% YoY). After having achieved FY24 sales bookings of Rs 145 billion, the company is well on track to achieve its FY25 sales bookings guidance of Rs 175 billion.

The company has launches worth Rs 120 billion lined up for the remainder of FY25, which should enable it to meet its guidance. We believe that the company’s historical leverage concerns are now a thing of the past (peak debt of over Rs 180 billion) with June-24 net debt at Rs 432 billion (net debt/equity of 0.24 times).

We retain our Hold rating with a revised target price of Rs 1,264 (earlier Rs 1,109) based on 50% premium to FY24 net asset value of Rs 739/share, factoring in new land bank additions.

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

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