This Real Estate Stock Rallied 23.76% In 1 Week, Motilal Oswal Says "Buy" For 26% Gains

Motilal Oswal in its equity report on Macrotech Developers Ltd has assigned a "Buy" on the stock of the company with a target price of Rs 1,250 apiece. According to the given target price to the stock, it can give a positive return of up to 26%. This is a Real Estate sector midcap stock having a market capitalisation of Rs 48,046.88 crore. Below are key takeaways from the report.

Stock Performance & Returns

The stock last traded at Rs 997.35 apiece, jumped 18.06% compared to its previous close. The stock has given 23.76% positive return in the past 1 week. However, it has fallen 1.73% in 1 month and 4.92% in 3 months, respectively. It has fallen 9,27% in the past 1 year.

The stock recorded its 52 week low on 24 February 2023 at Rs 711 apiece and 52 week high on 7 April 2022 at Rs 1,221.90 apiece, respectively.

Buy for with a target price of Rs 1,250/share

According to Motilal Oswal, Management has laid out a clear growth strategy with an aim to capture market share in micro-markets with a niche presence. In line with its growth strategy, the company has already exceeded its full-year BD guidance by adding 11 new JDA projects with a GDV of INR178b. At the CMP, the stock trades at a 15% discount to its existing project NAV, which indicates that the market is not offering any value to its ability to successfully monetize existing projects, let alone funding for growth. "We believe this is unwarranted given the company's execution track record and market leadership position. We maintain BUY with a SOTP based TP of 1,250 (SOTP details in Exhibit 14)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.