Nomura has initiated coverage on Macrotech Developers with a “buy” rating and a target price of Rs 1,600. The firm highlighted the company’s solid earnings visibility supported by well-structured capital-allocation strategies and visible rerating triggers. Nomura expects Macrotech’s pre-sales to grow at a 20% CAGR over FY25-26F.
The company also has significant potential to exceed its business development (BD) goals, ensuring sustained future growth. Additionally, Macrotech’s Palava project is on the verge of major infrastructure upgrades, which are expected to drive both volume and price growth.
Currently, the stock trades at 32x its forecasted 2025 EV/EBITDA. However, Nomura identified key risks, including a potential slowdown in the Indian residential market or delays in the planned infrastructure upgrades around Palava.
