Lodha shares rise 2% after Q4FY23 updates; here’s what top brokerages say

Most brokerage firms appear happy with the company’s Q4 show.

Lodha stock hit its 52-week high of ₹1,191 on BSE on July 28, 2022, As of April 24, 2023 close, the stock is down 24 per cent from that level. The stock hit its 52-week low of ₹711 on February 24, 2023.

After the company’s Q4 business updates, brokerage firm Kotak Institutional Equities maintained a buy call on the stock with a target price of ₹1,330, implying a 47 per cent upside from the stock’s April 24 close of ₹906.35 on BSE.

Kotak said the company, with its diversified geographical presence across the MMR (Mumbai Metropolitan Region), is well-placed to gain further market share.

“Lodha delivered a strong all-round performance in Q4FY23 with pre-sales of ₹3,000 crore, aided by new launches and collections of ₹2,900 crore. Deleveraging was in line with guidance, with net debt down to ₹7,100 crore. Strong business development ( ₹17,500 crore target in FY2024), launches of ₹12,900 crore and presales target of ₹14500 crore (up 20 per cent YoY) in FY24 should keep the momentum up,” Kotak said.

Brokerage firm HDFC Securities believes Macrotech Developers is well-placed for growth and it has maintained a buy call on the stock with a target price of ₹ 1,249, implying a 38 per cent upside from the stock’s April 24 close of ₹906.35 on BSE.

The brokerage firm highlighted that Macrotech Developers reported its highest-ever annual presales of 9.3msf (up 16 per cent YoY), valued at ₹12,000 crore (up 33 per cent YoY), beating its own guidance of ₹11,500 crore, due to robust launches of 10.5msf (up 81 per cent YoY).

As per the brokerage firm, Macrotech Developers is expecting ₹14,500 crore in presales (up 20 per cent YoY), with ₹700-1,000 crore coming from two pilot projects in Bengaluru, over ₹2,000 crore from Pune and the rest from MMR for FY24.

“This 20 per cent growth in presales will be driven by 5-6 per cent growth in price (8 per cent growth seen in FY23) and the rest from higher footfalls and conversion. Macrotech Developers targets to achieve an overall ₹21,000 crore of annual presales by FY26,” said HDFC Securities.

On similar lines, Motilal Oswal Financial Services also maintained a buy call on the stock with a target price of ₹1,250, which is a 38 per cent upside from the stock’s April 24 close of ₹906.35 on BSE.

Motilal attributed the company’s in-line quarterly numbers, its 20 per cent pre-sales growth target in FY24, the reduction in the company’s net debt and the strong rebound in revenue to its positive view on the stock.

However, it said that due to lower completions and the company’s decision to hold on to its annuity assets (versus earlier plans to monetise), it had marginally lowered its FY24 revenue, resulting in a 6 per cent drop in EBITDA and a 15 per cent drop in adjusted PAT.

Moreover, Motilal said the company will be able to sustain a pre-sales growth rate of 20 per cent over the next two to three years, supported by its future pipeline and sector tailwinds.

The company’s indication of existing profitability assures that the growth will be driven by healthy profitability too, Motilal said.

Disclaimer: The views and recommendations given in this article are those of the broking firms. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.