Morgan Stanley has reiterated its Equal-weight rating on Macrotech Developers with a target price of ₹1,230, implying an 11% upside from the current market price of ₹1,104.95. Over the last 12 months, Macrotech reported a 23% year-over-year increase in pre-sales and a 10% increase in collections. The embedded EBITDA margins for Q2 pre-sales improved to 34%, up from 33% in Q1FY25 and 31% in Q4FY24.
However, Q2 revenue and EBITDA declined sequentially by 8% and 7%, respectively, though year-over-year growth remains strong due to changes in accounting practices, with LTM (last twelve months) revenue up 48% and EBITDA up 76%. The EBITDA margin remained steady quarter-over-quarter at 27%. In the non-residential segment, Macrotech doubled its stake in digital infrastructure to 66.7% and acquired 45 acres of land in Chennai for warehousing expansion.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
