Macrotech Developers (Lodha) share price rose over 2 per cent to hit its fresh 52-week high of 763.40 on BSE on Monday (July 31) as investors continued buying the stock after the company's impressive June-quarter pre-sales performance.
Lodha, on Thursday (July 27), reported its best-ever first quarter pre-sales performance at ₹3,350 crore and strong business development of nearly ₹12,000 crore. The stock rose 2.75 per cent in the following session on July 28.
However, the company's consolidated net profit for Q1FY24 fell to ₹179.2 crore from ₹271.3 crore year-on-year (YoY). Total income for the quarter stood at ₹1,671.8 crore, lower than the ₹2,675.8 crore in the same quarter last year.
While Lodha's Q1 numbers were weak, brokerage firms largely remained positive about the stock, citing the company is on track to achieve its FY24 guidance.
Motilal Oswal Financial Services retained a 'buy' call on the stock with an unchanged target price of ₹850, implying a 14 per cent upside potential.
"Lodha beat our pre-sales in Q1FY24 and remains on track to achieve its FY24 guidance. We keep our FY24 pre-sales estimate unchanged at ₹15,000 crore as we expect the company to exceed its pre-sales guidance of ₹14,500 crore," Motilal Oswal said.
"Lodha continues to deliver better-than-expected business development, which will entail further visibility on growth without losing focus on deleveraging. Our terminal growth rate of 4 per cent in our DCF-based methodology is the least it can achieve in the long term, leaving further headroom for re-rating," said the brokerage firm.
Motilal Oswal increased the company's revenue, EBITDA and PAT estimates by 13 per cent, 23 per cent and 31 per cent, respectively, for FY24 and 20 per cent, 26 per cent and 30 per cent, respectively, for FY25.
Nuvama Wealth Management maintained its buy call on the stock and raised the target price to ₹871 from ₹828 earlier.
"Lodha posted Q1FY24 pre-sales of nearly ₹3,350 crore (up 17 per cent year-on-year and 11 per cent quarter-on-quarter)—its best-ever in any Q1. The geographical diversification strategy is bearing fruit with new micro-markets clocking robust growth," said Nuvama.
"With the housing cycle turning, we expect the sales momentum to stay healthy. Pre-sales and cash flow trajectory would be key triggers in our view," Nuvama said.
ICICI Securities, on the other hand, downgraded the stock to a 'hold' from a 'buy' but raised the target price to ₹732 from ₹631, adjusted for a 1:1 bonus issue, after the 61 per cent increase in the company’s stock price in the last three months.
Lodha shares traded 1.42 per cent higher at ₹758.05 around 10:40 am.
Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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