Macrotech Developers, one of India’s leading real estate companies, saw its stock price surge by 3% on 7th October after reporting its highest-ever pre-sales for the second quarter. By 9:22 a.m., the stock was trading at ₹1,208.70 on the National Stock Exchange (NSE). The strong quarterly performance, despite seasonal challenges, has led to a favourable outlook for the company.
Market analysts, including Nomura, maintained a 'buy' rating with a target price of ₹1,600, making it a strong consideration for those looking to invest in stocks.
Best-ever pre-sales boost market confidence
Macrotech, known for its properties under the Lodha brand, achieved a 21% year-on-year increase in sales bookings, reaching ₹4,290 crore. This marked the highest-ever quarterly pre-sales for the developer, even though the inauspicious Shradhh period occurred in September, which typically dampens sales. The real estate firm’s performance in this quarter has reassured investors that Macrotech is on track to meet its financial year 2025 (FY25) guidance.
Strong collections and project expansion
Alongside record-breaking pre-sales, Macrotech Developers collected ₹3,070 crore in the fiscal second quarter, marking an 11% increase from the previous year. The company also added four new projects in Pune and Bengaluru, highlighting its continuous business development efforts in the residential sector. Additionally, Macrotech acquired 45 acres of land in Chennai for its digital infrastructure segment, focusing on warehousing and industrial projects.
Macrotech’s ongoing expansion into new cities and sectors demonstrates its long-term strategy for growth. The company is currently evaluating several new markets and is expected to make a decision regarding its next city entry by the second half of FY25. This expansion reflects its goal to diversify its portfolio while maintaining a strong presence in established regions like Mumbai Metropolitan Region (MMR), Pune, and Bengaluru.
Long-term prospects remain positive
Nomura's reaffirmation of a ‘buy’ rating, coupled with the company’s robust quarterly performance, reflects optimism regarding Macrotech’s future. The stock's year-to-date performance has been solid, rising 11%, though it slightly underperformed the benchmark Nifty index, which gained 15% in the same period. Despite this, over the last 12 months, Macrotech's stock has gained more than 50%, significantly outperforming Nifty’s 28% gain.
As the company continues to deliver results, including its completed development of 100 million square feet of real estate and over 110 million square feet currently in progress, investors have strong reasons to remain confident. The company's entry into new cities and its commitment to expanding its rental income base are clear indicators of a sustained upward trajectory.
Conclusion
With record-breaking pre-sales, ongoing project expansions, and an ambitious future outlook, Macrotech Developers is poised for continued growth. Investors seeking to invest in stocks within the real estate sector may find Macrotech a promising opportunity, especially as analysts maintain a positive forecast with targets set at ₹1,600.
The company’s strong performance and forward-looking strategies underscore its potential to outperform the broader market in the long run.
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