Lodha (Macrotech Developers) | Stock Performance Analysis

Stocks
1

Looking back over the past year, the company’s shares have yielded multibagger returns of 101.07%, in the same time frame BSE Realty has changed by 92.84%.

Stock Performance
Today, the broader market BSE Sensex is trading in the green, up by around 0.66%. The most focused sector currently is BSE Realty with all stocks in the sector trading positively leading to a sectoral rise of 5.94%. Macrotech Developers hit a fresh 52-week high today at Rs 1,090, while its 52-week low stands at Rs 355.50. In the last trading session, the stock closed at Rs 1,004.30. Today, it opened at Rs 1,010.15 and is currently trading at Rs 1,086, marking an increase of 8.14%. The company has crossed the 1 lakh crore market capitalisation mark and currently stands at approximately Rs 1,04,800 crore.

Over the past six months, the company’s shares have provided staggering returns of 53.79%. Looking back over the past year, the company’s shares have yielded multibagger returns of 101.07%. In the same time frame, BSE Realty has changed by 92.84%.

About the Acquisition
Macrotech Developers today reported to the exchanges that it has recently finalised the acquisition of Goel Ganga Ventures India Private Limited (GGVIPL), a real estate development firm established in July 2020. GGVIPL operates exclusively within India and specializes in real estate development and associated activities. Over the past three fiscal years, GGVIPL has reported nil turnovers. The acquisition is set to be completed by January 15, 2024. This acquisition marks a strategic expansion within the real estate domain for Macrotech Developers, aligning with their core business objectives.

About the company
Macrotech Developers Ltd is primarily engaged in the business of real estate development. It is among the largest real estate developers in India with a presence in MMR (Mumbai Metropolitan Region) and Pune markets. It also develops commercial real estate including as part of mixed-use developments in and around its core residential projects.

The company’s brands include Lodha, CASA by Lodha and Crown - Lodha Quality Homes for its affordable and mid-income housing projects the Lodha and Lodha Luxury brands for its premium and luxury housing projects and the iThink, Lodha Excelus and Lodha Supremus brands for its office spaces.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

2

Strategic development: Macrotech Developers raise Rs 3,281 crore through QIP

Subtitle: Explore how Macrotech Developers raised Rs 3,281 crore through a QIP, detailing the investors involved and the strategic implications.

Category: Stocks

In a strategic move, Indian real estate giant Macrotech Developers Ltd recently raised Rs 3,281 crore through a Qualified Institutional Placement (QIP). The funds raised are intended for debt repayment, land acquisition, and other corporate purposes. Let’s delve into the details of this significant development.

Understanding the QIP Process

A Qualified Institutional Placement (QIP) is a way for listed companies to raise capital by issuing equity shares to institutional investors. This method helps companies raise funds quickly without going through the lengthy process of a public offering.

Key Details of Macrotech Developers’ QIP

The QIP opened on March 4, 2024, and closed on March 7, 2024. The company’s share allotment committee approved the allotment of 2,98,89,353 Equity Shares at an issue price of Rs 1,098 per share (including a premium of Rs 1,088 per share), aggregating to Rs 32,818.51 million. This has increased the company’s paid-up equity share capital to Rs 9,944.20 million, comprising 99,44,20,185 Equity Shares.

Investors in the QIP

Several prominent Qualified Institutional Buyers (QIBs) participated in Macrotech Developers’ QIP. The list includes:

New World Fund INC: Allotted 15,47,212 company shares, investing Rs 169.88 crore.

Stichting Depositary APG: Allotted 26,82,017 company shares, investing Rs 294.48 crore.

HDFC Life Insurance Company: Allotted 21,89,404 shares, investing Rs 240.39 crore.

Invesco Fund: Allotted 64,14,509 company shares, investing Rs 704.31 crore.

Nomura Ireland Funds: Allotted 21,41,518 company shares, investing Rs 235.14 crore.

GQG Partners Emerging Markets Equity Fund: Allotted 33,52,104 company shares, investing Rs 368.22 crore.

Significance of the QIP

The successful completion of the QIP reflects investor confidence in Macrotech Developers’ growth prospects. The funds raised will strengthen the company’s financial position, enabling it to pursue strategic initiatives and capitalise on growth opportunities in the real estate sector.

Conclusion

Macrotech Developers’ successful QIP is a testament to its strong market position and the trust it commands among institutional investors. The funds raised will bolster the company’s ability to navigate the evolving real estate landscape and drive long-term value for its stakeholders.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

4

Macrotech Developers Plan To Infuse Rs.3.500- 4,000 Cr

Macrotech Developers plans to invest Rs 3,500-4,000 crore to acquire land, aiming to expand in key markets and significantly boost sales and reduce debt.

Macrotech Developers, a prominent real estate firm in India, has announced that it has plans to invest between Rs 3,500 crore and Rs 4,000 crore in the current fiscal year to acquire land lots. This substantial investment is aimed at fueling the company’s expansion across key urban areas, including Mumbai and Pune. The company, known for its projects under the ‘Lodha’ brand, is set to enhance its land bank through acquisitions and partnerships.

Expansion and Market Goals

The Lodha Group, led by MD and CEO Abhishek Lodha, has set ambitious targets for the coming years. It aims to increase its annual sales bookings significantly, from the current Rs 14,500 crore to Rs 17,500 crore in the next fiscal year. This growth strategy is driven by the growing demand for high-quality homes in India, which Macrotech Developers plans to capitalize on by launching multiple new housing projects.

Financial Performance and Debt Reduction

In FY24, Macrotech Developers reported a threefold increase in profit, reaching Rs.1,549.1 crore compared to Rs.486.7 crore in FY23. The company’s total income also saw a rise, growing to Rs.10,469.5 crore from Rs.9,611.2 crore. Additionally, the company has made significant strides in reducing its debt. Through strong operating cash flows and a capital raise, Macrotech Developers reduced its net debt by over Rs.4,000 crore to Rs.3,000 crore.

Focus on Key Markets

Macrotech Developers is also looking to invest Rs.3,000 crore specifically in the Bengaluru market, targeting the booming property demand in the IT hub and otherwise. This investment is part of a broader strategy to increase the company’s market presence and leverage opportunities in high-growth regions. The company aims to triple its sales bookings to Rs.20,000 crore by FY26, highlighting its aggressive growth ambitions.

Conclusion

With a strategic focus on acquiring prime land parcels and expanding its footprint in key markets, Macrotech Developers seems ready for significant growth. The company’s financial health, evidenced by its profit increase and debt reduction, positions it well to achieve its ambitious sales targets and meet the rising demand for quality housing in India.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

5

Macrotech acquires three land parcels in Mumbai and Pune with Rs 11,000 crore revenue potential

The real estate firm Macrotech Developers has acquired three major land parcels in the Mumbai and Pune regions with a revenue potential of Rs. 11,000 crore.

As housing demand continues to rise in the metropolitan cities of Mumbai and Pune, the real estate firm Macrotech Developers has acquired crucial land in the Mumbai Metropolitan Region and Pune from April to June quarter to develop projects with a revenue potential of Rs. 11,000 crore. The Mumbai-based real estate firm Macrotech Developers operates under the name of the Lodha brand, which acquires the land parcels through two routes: outright purchases and partnerships with landowners. The company, in its latest operational updates, did not specify whether it bought outright or entered into joint development agreements (JDAs) with landowners. During 2023–24, the company added many new land parcels to build housing projects with a potential sales value of over Rs. 20,000 crore. The increasing housing demand has led to real estate firms acquiring major lands and preparing to release new projects.

Macrotech Developers (LODHA) stock movement and performance:

As per the latest development, the stock is moving very fast today in intraday and is right now 3% up. The stock already crossed today’s high, which is Rs. 1436 per share and is now trading at Rs. 1438 per share. The latest high price for the stock is Rs. 1439.40 per share.

Macrotech Developers experienced a 20% surge in sales bookings on other key operational performance parameters, with Rs 4,030 crore recorded in the first quarter of this fiscal year, as opposed to Rs 3,350 crore in the corresponding period of the previous year.

In the fiscal year 2023–24, Macrotech Developers witnessed a significant increase in its sales bookings (pre-sales) by 20%, reaching an all-time high of Rs 14,520 crore, as opposed to Rs 12,060 crore in the previous financial year of 2022–23. In the first quarter of this fiscal year, there was a 12% increase in collections from customers, reaching Rs 2,690 crore, as stated in the latest operational update.

This is compared to Rs 2,400 crore collected during the same period last year. The company has given guidance on achieving 21 percent annual growth in sales bookings this fiscal year to Rs 17,500 crore.

Macrotech expansion in Bengaluru:

Macrotech Developers, which has a significant presence in the Mumbai Metropolitan Region (MMR) and Pune and has recently entered Bengaluru, plans to launch 17 housing projects this fiscal year with a revenue potential of Rs 12,000 crore to enhance its sales bookings.

Conclusion

Macrotech developers believe that this new land acquisition in the Mumbai and Pune regions will boost sales, showcasing their strong presence in the Maharashtra metro cities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.