Jefferies cuts Macrotech Developers target to INR1,600

Published 28/01/2025, 07:08
Jefferies cuts Macrotech Developers target to INR1,600

On Tuesday, Jefferies analyst Abhinav Sinha adjusted the price target for Macrotech Developers (NSE:MACE) Limited (LODHA:IN), bringing it down to INR1,600 from INR1,615. Despite the slight decrease, the firm continues to endorse a Buy rating for the real estate developer's stock.

Sinha highlighted that Macrotech Developers, also known as Lodha, has been experiencing robust residential demand, which aligns with the company's forecast for 20% pre-sales growth. The third quarter showed a notable rise in the monetisation of township land, with prices having increased eightfold over the past four years. Additionally, the launch of premium residential projects has contributed to the highest township residential sales in three quarters.

The analyst pointed out that Macrotech Developers' strong operating cash flow, coupled with low gearing—a measure of financial leverage—positions the company for sustainable expansion into new markets. These factors are seen as key advantages for Lodha's long-term strategy.

While the price target has been revised slightly downward, Jefferies' stance on the stock remains positive. The Buy rating is sustained by the company's consistent performance and its strategic approach to growth and expansion. The new price target of INR1,600 reflects Jefferies' continued confidence in Macrotech Developers' prospects.

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