Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Macrotech Developers Ltd - Strong momentum heading into festive season - ICICI Securities

Posted On: 2021-10-07 21:31:16 (Time Zone: IST)


Macrotech Developers (LODHA) delivered an inline Q2FY22 performance with sales bookings of Rs20.0bn which were up 88% YoY and 109% QoQ. With five new JDA signings in H1FY22 having potential cumulative sale value of Rs45bn of which three projects have been launched in Sep'21, we believe that the company is on track to achieve Rs85-90bn of sales bookings in FY22E and also reduce its India net debt to Rs100bn by Mar'22. We revise our target price to Rs1,129/share (earlier Rs927) assigning a 25% premium to our Mar'22 NAV of Rs904/share considering new JDA signings and retain our ADD rating. Key risks to our rating are a demand slowdown in the MMR residential market and rising interest rates in India. We expect another three to four new JDA signings in H2FY22 across Mumbai's eastern and western suburbs and Thane region. The company's two London projects clocked GBP145mn (Rs14.5bn) of sales bookings in Q2FY22 which is an additional positive.

- Q2FY22 sees strong QoQ improvement in sales bookings: LODHA clocked Q2FY22 India business sales bookings worth Rs20.0bn (up 88% YoY and 109% QoQ) in line with our estimates. While April and May 2021 saw sales worth just Rs3.0bn owing to impact of second Covid wave in the Mumbai Metropolitan Region (MMR), the company has clocked sales worth Rs6.5bn in June 2021. This momentum continued into Q2FY22 where the company has seen monthly sales of Rs6-7bn in spite of minimal new launches. India business collections of Rs19.1bn were up 73% YoY and 12% QoQ. While India business net debt remained flat QoQ at Rs125.1bn as of Sep'21, the company has maintained its guidance of reducing this debt to ~Rs100bn by Mar'22 as collections see a further pickup in H2FY22 led by faster execution and new launches. Another positive was the company achieving sales bookings in its London projects of GBP110mn (Rs11bn) at Grosvenor Square and GBP35mn (Rs3.5bn) at Lincoln Square during the quarter.

- On track to achieve FY22E India business sales guidance of Rs90bn: As per our channel checks, the company has done soft launches for three of its recently signed JDA projects - first one is Codename Only The Best at NIBM, Pune having a potential GDV of Rs10-11bn (1.3msf) with ~50% of the area launched for sale. The second project is Lodha Twin Towers at Mulund East in Mumbai's eastern suburbs which is a society redevelopment project of 0.7msf having two towers of G+40 storeys with total GDV of Rs10bn and one tower (~50% of area) has been launched for sale. The third one is a JDA in Kandivali East of 1.4msf having GDV of Rs15-16bn. Heading into Oct'21, the company has already started marketing new/upcoming phases in Phase 2, Palava under the "International City with an Indian Heart' marketing campaign and we expect this launch to take Lodha to a monthly sales run-rate of Rs10bn from Oct'21 which implies Rs50-60bn of sales bookings in H2FY22 after clocking Rs30bn in H1FY22 and company is on track to achieve its FY22 sales guidance of Rs90bn. We expect another three to four new JDA signings in H2FY22 across Mumbai's eastern and western suburbs and Thane region.

- Valuations: We revise our target price to Rs1,129/share (earlier Rs927) assigning a 25% premium to our Mar'22 NAV of Rs904/share considering business development value from new JDA signings and retain our ADD rating. Our Gross Asset Value (GAV) of Rs505bn includes Rs332bn for FY23-30E post-tax-FCFF, Rs152bn for company's land bank of 3,800 acres and Rs20bn from UK project surplus. Adjusted for FY22E India net debt of Rs101bn, we arrive at our NAV of Rs404bn or Rs904/share.

Shares of Macrotech Developers Limited was last trading in BSE at Rs. 1123.15 as compared to the previous close of Rs. 1054.60. The total number of shares traded during the day was 70103 in over 5297 trades.

The stock hit an intraday high of Rs. 1144.65 and intraday low of 1073.30. The net turnover during the day was Rs. 78169411.00.


Click here to send ur comments or to feedback@equitybulls.com

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Mphasis - 2QFY22 Result Update - Growth Resiliency Continues; Raise Target Price - Reliance Research

Maintain ADD on Havells India - Outperformance continues; miss on margin - HDFC Securities

Indraprastha Gas - Company Update - EV vs CNG; TCO Economics Favour CNG - Reliance Research

FinTech Playbook - Discount Brokers - 'Nudging' the long tail of standalone brokers - HDFC Securities

Tata Communication - Revenue growth remains muted - YES Securities

Havells India Ltd - Q2FY22 Result Update - YES Securities

ICICI Lombard General Insurance - Q2FY22 Result Update - YES Securities

Syngene International Ltd - Lack of near term triggers - YES Securities

Mphasis - Q2FY22 First Cut - YES Securities

IndiaMART InterMESH - Q2FY22 First Cut - YES Securities

Sterlite Technologies - Q2FY22 First Cut - YES Securities

Can Fin Homes - Q2FY22 First Cut - YES Securities

Havells India - 2QFY22 Result Update - Strong Revenue Growth; Higher Commodity Prices Impact Earnings - Reliance Research

TVS Motor - 2QFY22 Result Update - Healthy Exports Coupled with New Launches to Aid Higher Margins - Reliance Research

Maintain SELL on Jubilant FoodWorks - No big fireworks unlike in other discretionary names - HDFC Securities

Sonata Software - Strong execution - HDFC Securities

Navin Fluorine International - Muted performance - HDFC Securities

Maintain ADD on Heidelberg Cement - Cost pass-through efforts to protect margin - HDFC Securities

Maintain BUY on Mastek - Minor misses, recovery underway - HDFC Securities

Oil and Gas - Q2FY22 Results Preview Report - HDFC Securities

Building Materials - Q2FY22 Results Preview Report - Strong recovery! - HDFC Securities

Jubilant Foodworks - Soft SSSG in the quarter but record store openings points to strong outlook ahead - YES Securities

L&T Technology Services - Overall, performance was ahead of expectations - YES Securities

Just Dial Ltd - Both revenue and EBITDA below expectation. PAT boosted by higher other income - YES Securities

Syngene International Ltd - Lower gross margin lead to EBIDTA miss - YES Securities

GMR Infrastructure - Airports to drive value; initiate with a HOLD - ICICI Securities

ICICI Prudential Life Insurance - Business mix more balanced than ever; volume vs margin pose near-term quandary - ICICI Securities

HeidelbergCement India - Margins impacted by cost escalations - ICICI Securities

Navin Fluorine International - Revenue growth still some time away - ICICI Securities

Havells India - Strong volume led revenue growth - ICICI Securities

Q3CY21 Result Update - ACC Ltd - ICICI Direct

Q2FY22 Result Update - 5paisa Capital - ICICI Direct

Q2FY22 Result Update - Hindustan Unilever - ICICI Direct

Tata Communications - Q2FY22 First Cut - ICICI Direct

Q3CY21 Result Update - Nestle India - ICICI Direct

HeidelbergCement India - 2QFY22 Result Update - Steady Volume and Better Realizations Aid Performance - Reliance Research

Maintain BUY on UltraTech Cement - Strong demand moderates impact of cost inflation - HDFC Securities

ACC - 2QFY22 Result Update - Performance Beat Despite Elevated Input Costs - Reliance Securities

Maintain ADD on L&T Infotech - Riding the wave - HDFC Securities

Maintain REDUCE on Hindustan Unilever - Miss in volume, no respite on margin front - HDFC Securities

Maintain REDUCE on Nestle India - Revenue momentum sustains; miss in margin - HDFC Securities

L&T Technology Services - ER&D leadership shines through - HDFC Securities

Maintain BUY on ACC - Mixed performance - HDFC Securities

Power Plus - Demand remains strong but coal stock is critical - HDFC Securities

At 11-year high, BSE Realty Index still lower than 2008 peak

Leveraged financials - 2QFY22E Results Preview Report - HDFC Securities

UltraTech Cement - Revenue Inline, inflated cost dragged EBITDA - YES Securities

Craftsman Automation - Q2FY22 First Cut - YES Securities

Ultratech Cement - 2QFY22 Result Update - Elevated Costs Pressure Led To Earnings Miss - Reliance Securities

L&T Infotech - Q2FY22 Result highlights - YES Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020