Macrotech Developers shares up 2% on robust growth outlook
Shares of Macrotech Developers (MLDL) rose 2% on the National Stock Exchange (NSE) on September 14, 2023, to trade at Rs 806.20 apiece, as investors continued to bet on the company’s strong growth prospects. The stock saw a high volume of trading, with nearly 19 lakh shares changing hands on the NSE and BSE combined. In year-to-date terms, the stock is up nearly 46%.
The company’s Q1FY24 results showed a 39.57% YoY decline in revenue from operations at Rs 1,617 crore. Net profit for the quarter was down 33.94% YoY to Rs 179 crore. However, the operating margins expanded by 300 basis points on a yearly basis to 20%.
The positive sentiment on the stock was supported by a ‘buy’ rating from brokerage firm Jefferies, which has a target price of Rs 860 per share. The brokerage sees an upside potential to the share price movement, given the company’s strong pre-sales and cash collection targets for the ongoing fiscal. Jefferies also noted that the company’s management expects an excess cash surplus by the end of this fiscal, even after cutting debt.
Macrotech Developers is a leading real estate developer in India. The company has a diversified portfolio of residential, commercial, and industrial projects. The company’s strong financials and robust growth prospects make it a good investment option for long-term investors.
Key Highlights:
- MLDL shares up 2% on robust growth outlook.
- The stock was trading at Rs 806.20 apiece, up 1.61% or Rs 12.75 at 12:30 pm on the NSE.
- Nearly 19 lakh shares of the company exchanged hands at both exchanges against a monthly average of 15 lakh shares.
- In year-to-date terms, the company’s stock is up nearly 46%.
- Jefferies has recommended a ‘buy’ on the company’s stock with the target price set at Rs 860 per share.
- The brokerage sees an upside potential to the share price movement, given the company’s strong pre-sales and cash collection targets for the ongoing fiscal.
- Jefferies also noted that the company’s management expects an excess cash surplus by the end of this fiscal, even after cutting debt.
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