Shares of Macrotech Developers Ltd surged in Thursday’s trade, extending their gains for the fourth straight session. The stock zoomed 18.18 per cent to hit a day high of Rs 999 over its previous close of Rs 845.30. At today’s high price of Rs 999, the scrip has gained 40.51 per cent from its 52-week low of Rs 711, hit on February 24, 2023.
Motilal Oswal Research, in its report, said, “Macrotech Developers is targeting sustainable growth on the back of industry tailwind. The management believes that the housing segment will be the biggest beneficiary of an increase in the country’s per capita income from $2,000 to $5,000 over the next decade, especially on the back of substantial growth in the middle-class strata.”
With massive scale of development already delivered, the company is also looking to venture into the facility management vertical, which has the potential to generate EBITDA of Rs 100 crore by FY26 and Rs 500 crore by FY31, it added.
The brokerage has assigned a ‘Buy’ call with a target price of Rs 1,250.
Sharekhan by BNP Paribas stated, “Macrotech is well placed to benefit from supply consolidation as high-interest rate regime affects unorganised players. It is likely to exceed its pre-sales guidance for FY2023 with a strong launch pipeline for Q4 while it has already surpassed new project addition targets.”
On the technical front, AR Ramachandran from Tips2trades said, “Macrotech Developers looks very bullish and now faces strong daily resistance at Rs 1,020. Investors can buy only on a dip near the support level of Rs 921 for the above-mentioned resistance.”
The stock was last seen trading higher than 5-day and 20-day moving averages but lower than 50-day, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 56.32. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 502.93.
That said, Macrotech Developers has an average target price of Rs 1,364.67, Trendlyne data showed, suggesting a potential upside of 41.78 per cent. The scrip has a one-year beta of 1.14, indicating low volatility.
Macrotech Developers sells its properties under the Lodha brand and is one of the leading real estate developers in the country.
Meanwhile, Indian equity benchmarks fell sharply in late deals today, dragged by technology, consumer goods and automobile stocks.
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