
Shares of Macrotech Developers Ltd surged nearly 6% to trade at ₹1,192.15 in Friday’s session after brokerage firm Kotak Institutional Equities upgraded the stock to ‘BUY’ with an unchanged fair value of ₹1,340, indicating further upside potential.
Highlights of Kotak’s Analysis:
- Strong Growth Metrics: The company has demonstrated consistent growth, delivering a 34% CAGR over FY2021-24 and is expected to achieve a 21% CAGR over FY2024-27E.
- Steady Business Development: Most of Macrotech’s business expansion is through the Joint Development Agreement (JDA) route, ensuring a steady and scalable model for growth.
- Geographical Expansion: Management hinted at plans for gradual entry into new cities, which could boost long-term growth. The company’s success in Pune and Bengaluru sets a positive precedent for these potential expansions.
Investors cheered the optimistic outlook provided by Kotak, pushing Macrotech shares higher. The stock’s day range was between ₹1,131.35 and ₹1,198.25, reflecting heightened trading activity.
The brokerage firm emphasized that Macrotech Developers continues to deliver robust growth across all key metrics, making it a strong candidate for long-term investment. The potential expansion into new cities could offer additional upside if the company replicates its success in Pune and Bengaluru.
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