3 days Ago
Shares of Macrotech Developers surged 5% to its day’s high of Rs 1,297.60 on BSE after the global brokerage firm Nomura initiated coverage on the stock with a buy rating and a target price of Rs 1,600, predicting a 30% upside potential. The global brokerage firm is positive on the stock’s future prospects given its solid earnings visibility with right capital- allocation strategies as the company expects pre-sales growth at 20% CAGR over FY25-26.
Additionally, the company has ample potential to exceed business development (BD) goals to maintain future growth, thanks to strong operating cash flow (OCF) generation and relatively low net debt. The company is targeting an embedded ROE on projects to grow to 20% by FY26F. “We think the company’s township business (in the extended eastern suburbs of Palava and Thane) is due for rerating on volume growth as the region will likely see roughly one infrastructure upgrade per year going forward and price growth driven by the company’s strategy on premiumization,” said Nomura in its note.
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8% while in the current year so far, the stock has gained 22.35%. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
