Macrotech Developers stock: Lodha shares Q3 biz update, says pre-sales at Rs 3,410 cr best ever

Shares of Macrotech Developers Ltd (Lodha) will be in focus on Friday morning after the real estate developer said its pre-sales at Rs 3,410 crore was its best ever December quarter performance. Pre-sales grew 12 per cent on a year-on-year (YoY) basis, Lodha said.

"This strong performance is despite the inauspicious ‘Shradhh’ period falling in October this financial year (against September in FY23). Excellent response to launch of 1st project in Bengaluru with 1st phase sold out in 3 days showcases brand strength in new geographies," Macrotech Developers said.

For the first three quarters of FY24, Lodha's pre-sales stood at Rs 10,300 crore, suggesting YoY growth of 14 per cent. This has kept Macrotech Developers on track to deliver its pre-sales guidance of Rs 14,500 crore for FY24, the developer said in a filing to BSE.

Macrotech Developers shares are up 56.35 per cent in the last six months and 103.97 per cent for the last one-year period. Macrotech Developers said its collections for the quarter stood at Rs 2,590 crore and that it added three projects with 2 million square feet of saleable area for a GDV of Rs 6,000 crore.

"Our business development for 9MFY24 at Rs 20,300 crore has already surpassed our full year guidance of Rs 17,500 crore for the year. UK investments are now completely exited with receipt of entire balance as per earlier communication," it said.

The company said its net debt remained largely stable during the quarter at Rs 6,750 crore.

Given the macro tailwinds and Macrotech’s strong brand recall, growth & collections visibility, comfortable leverage position, likelihood of market share gains, de-risking of business with geographic diversification, B&K Securities said it would command a premium of 110 per cent to its residential NAV.

"We believe there is a possibility for further upgrade in premium based on continuity of momentum in the housing sector. We arrive at a SOTP value of Rs 1,155 per share for Macrotech Developers. We initiate coverage on the stock with a Buy rating," B&K Securities said in a December 28 note.

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