Lodha share price jumps over 4% on Q2 results boost

Macrotech Developers (Lodha) share price rose over 4 per cent in intraday trade on BSE on Tuesday, October 31, looking set to extend gains into the third consecutive session. The stock opened at 769.70 against the previous close of 759.60 and rose 4.5 per cent to the intraday high of 794.

The company on Saturday (October 28), said in the seasonally weakest quarter, it saw its best-ever pre-sales performance showing 12 per cent year-on-year (YoY) growth along with continued debt reduction and robust business development.

According to the company’s exchange filing, the company’s pre-sales in Q2FY24 stood at 3,530 crore, up 12 per cent YoY. Revenues from operations during the quarter 1750 crore, down 0.9 per cent YoY. PAT during the quarter stood at 210 crore, down 42.4 per cent YoY.

Lodha share price has gained 39 per cent in the current calendar year so far against a 5 per cent gain in the equity benchmark Sensex.

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Following the company’s Q2 results, brokerage Motilal Oswal Financial Services maintained a buy call on the stock and raised the target price to 900.

“Lodha delivered in-line operating performance and remains on track to exceed its FY24 pre-sales guidance of 14,500 crore. Hence, we maintain our pre-sales and cash flow estimates. We continue to prefer companies with an ability to outperform peers on the growth front. Lodha is one of our top picks in the sector,” said Motilal Oswal.

“The company reduced its debt significantly in Q2FY24 and remains on track to further reduce it by 1,500-2,000 crore to less than 5,000 crore. With comfortable leverage, the company will incrementally focus on growth with an aim to sustain the pre-sales CAGR of 20 per cent over the next few years,” Motilal said.

Brokerage firm HDFC Securities maintained its ‘add’ call on the stock with a target price of 750, given robust growth visibility, better-than-expected GDV (gross development value) addition and an uptick in land prices.

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Updated: 31 Oct 2023, 01:50 PM IST

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