Target: ₹1,109
CMP: ₹1,233.90
Along expected lines, Macrotech Developers (Lodha) achieved strong Q4-FY24 sales bookings of ₹4,230 crore (up 40 per cent y-o-y).
Hence, the company has achieved FY24 sales bookings of ₹14,500 crore, exactly in line with its FY24 sales booking guidance.
With the recent equity raise of about ₹3,300 crore, Lodha has pared net debt to ₹3,010 crore (net D/E of 0.1x). With a strong launch pipeline heading into FY25 and new FY24 project additions with GDV of ₹20,300 crore, the company is targeting 20 per cent sales booking CAGR over FY24-26E as well, implying FY26 sales bookings of ₹21,000 crore, for which it intends to continue pursuing aggressive business development.
Factoring in recent QIP and new land bank additions, we revise our TP to ₹1,109 (from ₹1,013) based on 50 per cent premium to FY24E NAV of ₹739/share. Maintain Hold.
We await further clarity on company’s ability to replenish high-value inventory, especially in South and Central Mumbai before raising our estimates further.
Key upside risk is higher-than-expected price growth; and downside risk is a slowdown in Mumbai market volumes.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.