homemarket NewsMacrotech Developers gains nearly 6% as Jefferies sees 14% upside on long term growth potential
Macrotech Developers gains nearly 6% as Jefferies sees 14% upside on long-term growth potential
The brokerage is bullish on the real estate stock and raised the target price to ₹1,290 from ₹884 per share earlier. The new target price implies a potential upside of 14% from Thursday's closing levels.
Shares of real estate firm Macrotech Developers surged nearly 6% on Friday, January 12, after the brokerage house Jefferies assigned a "buy" call on the stock citing a positive outlook for sales of residential projects.
The brokerage is bullish on the real estate stock and raised the target price to ₹1,290 from ₹884 per share earlier. The new target price implies a potential upside of 14% from Thursday's closing levels.
The brokerage said that the opening of the Mumbai Trans Harbor Link was the first mega project start for the company. The Trans Harbor Link is a more than $70 billion infra upgrade boosting connectivity in Mumbai.
Additionally, Lodha's extensive over 4,300-acre land bank on the city outskirts positions the firm favourably amid doubled land prices over the past three years, suggesting potential long-term upside, Jefferies said in its research note.
Furthermore, the anticipation of an 'affordable housing policy' boost adds to the positive outlook for residential sales.
Macrotech Developers focuses on real estate development and construction, specializing in diverse projects such as residential housing complexes, commercial office spaces, and retail developments.
Earlier this week, in an interview with CNBC-TV18, Abhishek Lodha, MD and CEO of Macrotech Developers, expressed confidence in the real estate market's resilience, emphasising, “Demand across the board is quite strong.”
The company is set to achieve its guidance of a 20% growth in bookings despite economic fluctuations. Lodha commented on the overall performance in 2023, stating, "In general, the housing market had a robust year."
However, Lodha recognised disparities in growth among segments. "The affordable entry segment, comprising homes priced between ₹30 lakhs and ₹75 lakhs, experienced relatively lower performance," he added.
At 9.39 am, shares of Macrotech Developers were trading 5.72% higher at ₹1,194.95 apiece on BSE.
(Edited by : Asmita Pant)
First Published: Jan 12, 2024 10:50 AM IST
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