Macrotech Developers Faces Target Price Cut Amid Strong Quarterly Growth and Challenging Economic Environment.

Macrotech Developers Share Price Update

Macrotech Developers, known for its ‘Lodha’ brand, has seen brokerage firms revise their target prices for its shares. This change comes in light of a sluggish economic environment and limited potential for price increases.

Despite this, the company reported impressive quarterly results. For the December quarter, Macrotech’s consolidated net profit rose by 66% to Rs 944.4 crore. Additionally, consolidated revenue increased by 39% to Rs 4,083 crore. The company’s pre-sale bookings also performed well, growing by about 32% to Rs 4,510 crore year-on-year, marking its best quarterly performance. Collections for this quarter surged to Rs 4,290 crore, reflecting a 66% increase compared to the previous year. The company attributes this success to its strong operational capacity.

Lodha emphasized that demand for real estate remains robust, with consumers prioritizing high-quality homes. The company is optimistic that branded developers will continue to do well, even amid potential economic downturns.

However, brokerage firm Nomura Holdings expressed caution. While they maintain a positive outlook on demand for real estate, especially from top-tier developers, they noted that the possibility of long-term price increases is limited due to rising supply and macroeconomic challenges. As a result, they have lowered their target price from Rs 1,600 to Rs 1,450 but have kept a ‘BUY’ rating for the stock.

While Lodha’s sales have increased, the company has reportedly focused heavily on the mid and premium segments, which has affected overall sales.

Nuwama Institutional Equities pointed out that Macrotech’s emphasis on the Mumbai Metropolitan Region, cash flow management, and geographical diversification will support its long-term growth. They believe that land monetization and portfolio growth could act as catalysts for the stock. Nuwama has also reaffirmed a ‘Buy’ rating but adjusted their target price from Rs 1,749 to Rs 1,703.