Lodha Developers Ltd. share price target

Macrotech Developers (LODHA) achieved its best ever April-June sales bookings in Q1FY23 worth Rs28.1bn (Isec estimate of Rs25.5bn), which we believe has been driven by a combination of monetization of ready/completed inventory and new launches. The company has given an FY23E sales booking guidance of Rs115bn (Isec estimate of Rs110bn) and we believe that the sales guidance is achievable given the addition of new projects having total estimated GDV of Rs146bn in FY22, majority of which are slated for FY23E launch.

Macrotech Developers (LODHA) achieved record Q4FY22 India business sales bookings of Rs34.6bn vs. Isec estimate of Rs32.5bn (up 37% YoY and 33% QoQ) and record FY22 sales bookings of Rs90.2bn (previous highest was Rs81.2bn in FY18).

Macrotech Developers (LODHA) reported a strong all-round performance in 3QFY22. It delivered the best pre-sales in the last 12 quarters along with 44% YoY growth in collections that led to INR4b reduction in net debt. Progress on business development gathered momentum post the recent QIP, as the company signed six new projects in 3QFY22 with saleable area of 4.8msf and revenue potential of INR100b. We retain our FY23E/FY24E pre-sales backed by strong momentum in both sales bookings and deal additions; but, we lower our FY22/23 collection and...

Macrotech Developers (LODHA) achieved Q3FY22 India business sales bookings of Rs26.1bn vs. Isec estimate of Rs23.9bn (up 40% YoY and 30% QoQ) as the sales momentum seen in Q2FY22 continued into the festive season in Oct-Nov’21.

Macrotech Developers (LODHA) delivered an inline Q2FY22 performance with sales bookings of Rs20.0bn which were up 88% YoY and 109% QoQ. With five new JDA signings in H1FY22 having potential cumulative sale value of Rs45bn of which three
projects have been launched in Sep’21, we believe that the company is on track to achieve Rs 85-90bn of sales bookings in FY22E and also reduce its India net debt to
Rs100bn by Mar’22. We revise our target price to Rs1,129/share (earlier Rs927)
assigning a 25% premium to our Mar’22 NAV of Rs904/share considering new JDA
signings and retain our ADD rating.

Macrotech Developers Limited Issue Open: April 07 April 09, 2021, Price Band: Rs. 483 486, *Issue Size: 51,440,329 eq shares, Issue Size: Rs. 2484.6 2500.0 cr, Reservation for: QIB Upto 50% eq sh, Non Institutional atleast 15% eq sh, Retail Upto 35% eq sh, *Employee Upto 617,284 eq sh, Face Value: Rs 10, Book value:Rs. 97.03 (Dec 31, 2020) Bid size: - 30 equity shares and in multiples thereof

MACROTECH DEVELOPERS LIMITED (LODHA) is one of the largest real estate developers in India, by residential Sales value for the financial years 2014 to 2020. Its core business is residential real estate developments with a focus on affordable and mid-income housing. In 2019, it forayed into the development of logistics and industrial parks and entered

IPO NOTE

The Mumbai Metropolitan Region (MMR) is considered the most attractive real estate market in the Top Seven Indian Markets, having the largest share of supply and absorption, and highest average base selling price. In this region, MDL has developed a strong brand and has existing land reserves, industry knowledge and regulatory environment know-how. This, in turn, has aided the company to attain a leadership position in South Central Mumbai, Thane and the Extended Eastern Suburbs micro-markets of the MMR, with the largest share of supply (by units), absorption (by value) and...