Macrotech Developers Ltd Stock Analysis

BSE: 543287 | NSE: LODHA | Construction - Real Estate | Large Cap

BSE Share Price 23-Sep-2022 18:01
1033.85 -49.70 (-4.59%)

DeciZen - Make an Informed Decision on Macrotech Developers

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Macrotech Developers Price Chart

P/E Ratio (SA) :
47.04
Market Cap :
49,792.2 Cr.
52-wk low :
814.9
52-wk high :
1,538.7
Bole Toh?

1. Is Macrotech Developers Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Macrotech Developers Ltd is a below average quality company.

2. Is Macrotech Developers Ltd undervalued or overvalued?

The key valuation ratios of Macrotech Developers Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Macrotech Developers Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Macrotech Developers Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Macrotech Developers:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Macrotech Developers Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 8.1%5.7%10.7%8%5.2%5.3%8.3%6.4%4.4%6.7%-
Value Creation Index -0.3-0.5-0.1-0.3-0.5-0.5-0.4-0.6-0.7-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4504574,6656,7955,8657,4439,5168,1155,9268,3668,914
YoY Gr. Rt. %-1.5%921.2%45.7%-13.7%26.9%27.9%-14.7%-27%41.2%-
Adj EPS 00.127.332.41612.531.419.78.124.222
YoY Gr. Rt. %-1300%19385.7%18.7%-50.7%-22%152.1%-37.3%-58.7%197.2%-
BVPS (₹) 31.330.9101.8139.7169.811680.698.7104.2243.5246.3
Adj Net Profit 0.72.95907003614931,2447803221,1631,059
Cash Flow from Ops. -593-181-8616571,9208359482,0003,8182,150-
Debt/CF from Ops. -4.8-21.1-11.717.36.51917.98.54.15-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 38.4%7.4%-4.2%41.2%
Adj EPS 137.6%8.6%-8.4%197.2%
BVPS 25.67.544.6133.7
Share Price - - - -2.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 0.20.434.922.59.811.128.819.67.213.99
Op. Profit Mgn % 5.46.822.224.519.51825.922.320.310.521.1
Net Profit Mgn % 0.20.612.610.36.26.613.19.65.413.911.9
Debt to Equity 4.25.63.73.23.33.55.34.33.80.9-
Working Cap Days 2,0242,4449011,1261,4481,2691,1421,4371,9651,4500
Cash Conv. Cycle 3957565797569288948051,1261,5131,0750

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.92

Sales growth is good in last 4 quarters at 71.33%

Return on Equity has declined versus last 3 years average to 9.00%

Sales growth has been subdued in last 3 years -4.20%

Net Profit has been subdued in last 3 years -8.38%

Latest Financials - Macrotech Developers Ltd.

Standalone Consolidated
TTM EPS (₹) 22 27.3
TTM Sales (₹ Cr.) 8,914 10,304
BVPS (₹.) 246.3 247.2
Reserves (₹ Cr.) 11,380 11,423
P/BV 4.20 4.18
PE 47.04 37.94
From the Market
52 Week Low / High (₹) 814.85 / 1538.65
All Time Low / High (₹) 421.15 / 1538.65
Market Cap (₹ Cr.) 49,792
Equity (₹ Cr.) 481.6
Face Value (₹) 10
Industry PE 41.6

Management X-Ray of Macrotech Developers :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.0032.9932.9932.9932.990.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Macrotech Developers

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Macrotech Developers Ltd

Macrotech Developers is one of the largest real estate developers in India, by residential Sales value for the financial years 2014 to 2020. Currently, it has residential projects in the MMR and Pune. In 2019, it forayed into the development of logistics and industrial parks and entered into a joint venture with ESR Mumbai 3 Pte. (ESR), a subsidiary of ESR Cayman, an Asia Pacific focused logistics real estate platform. It also develops commercial real estate, including as part of mixed-use developments in and around its core residential projects.

The company’s customer-centric business model focuses on designing and developing its ‘branded products’ to address consumer needs across locations and price points. Its core competency lies in professionally managing the real estate value chain as it has in-house capabilities to deliver a project from conceptualization to completion. It has a strong focus on de-risking projects and improving its return on investment with fast turnaround time from acquisition to launch to completion.

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. Its inhouse sales team is supported by a distribution network of multiple channels across India as well as key non-resident Indian (NRI) markets, such as the Gulf Cooperation Council, United Kingdom, Singapore and the United States. The company’s large ongoing portfolio of affordable and mid-income housing projects include Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), Lodha Luxuria (Thane), Crown Thane (Thane), Bel Air (Jogeshwari), Lodha Belmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road).

Business area of the company

The company is primarily engaged in affordable residential real estate developments and in 2019, it entered into the development of logistics and industrial parks and also develop commercial real estate.

Awards and Accreditations

  • 2014: The Global Leadership in Real Estate Award’ in the NDTV Property Awards.
  • 2014: The Most Trusted Real Estate Brand in the Country’ by the Brand Trust Report.
  • 2014: Ranked as one of India’s Best Companies to Work for, 2014’ by Great Places to Work.
  • 2014: India’s Most Admired Builders’ by the Construction World Architect & Builder (CWAB).
  • 2015: Special Recognition Award’ in the ET Best Realty Brands (BRB) Awards.
  • 2015: Ranked as one of India’s Best Companies to Work for, 2015 by Great Places to Work.
  • 2016 ‘Best Private Township’ in the BW Business World Smart Cities Awards.
  • 2016: Certificate of recognition for ‘Iconic Upcoming Project- World One Worli’ as the Times Realty Icon 2016 by Optimal Media Solutions.
  • 2017: Best ‘Social Media Integrated Campaign’ for the World Towers at the National Awards for Marketing Excellence by Times Network.
  • 2017: Most Respected Real Estate Brand – India’ by 2017 Grohe Hurun.
  • 2017: Scroll of Honour award for ‘Marketing Firm of the Year – India’ by CREDAI.
  • 2018: Lodha Altamount recognised as one of the ‘Best Residential Project under Ultra-Luxury Segment’ in the West Zone of India by CNBC Awaaz Real Estate Awards 2017-18.
  • 2019: Best Activation Campaign Store Launch for Lodha Xperia Mall by the Activation Venue Forum.
  • 2020: Certificate of recognition for ‘Top Developer of the Year’ as the Times Real Estate Icons, West India 2020 by Optimal Media Solutions.

Major events and milestones

  • 2005: Launched Lodha Paradise in Thane.
  • 2006: Start of acquisition of land for Palava city.
  • 2006: Macrotec Constructions Private Limited (our erstwhile Subsidiary) won the bid for Apollo Textile Mills in an auction from National Textile Corporation for Bellissimo, Primero & Excelus projects.
  • 2008: Investment of Rs 16,400 million from Deutsche Bank in Cowtown Infotech Services Private Limited.
  • 2008: Investment from ICICI Ventures in Lodha Elevation Buildcon Private Limited in respect of ‘iThink Thane’.
  • 2010: Launch of Phase I of Palava City.
  • 2011: Acquisition of Wadala land parcel through auction process conducted by Mumbai Metropolitan Region Development Authority.
  • 2011: Launch of World One project in Lower Parel, Mumbai.
  • 2012: Exit of Deutsche Bank from Cowtown Infotech Services Private Limited.
  • 2012: Launch of New Cuffe Parade project in Wadala, Mumbai.
  • 2013: Launch of South Mumbai’s largest landscape, ‘The Park’ in Worli.
  • 2013: Acquisition of Washington House for Lodha Altamount project from the US Government.
  • 2014: Expansion into UK with acquisition of two development sites in Central London, including Canadian High Commission.
  • 2015: Successful closure of international bond offering of 12% $200 million due in 2020 by its Subsidiary, Lodha Developers International Limited.
  • 2015: Launched Lodha Luxury collection for super high-end residential.
  • 2015: Acquisition of 87 acre land from Clariant Chemicals in Thane.
  • 2016: Launch of Amara in Thane.
  • 2017: Exit of HDFC Venture Fund and Tramos Limited from Shreeniwas Cotton Mills Limited.
  • 2017: Exit of ICICI Ventures (iThink Thane in Lodha Elevation Buildcon Private Limited).
  • 2017: Launch of Lincoln Square project in London.
  • 2018: Follow-on fund raising of $125 million on 12% USD Bonds due in 2020.
  • 2018: Development finance tied up for both the London properties.
  • 2018: Acquisition of five acres of land parcel in Jogeshwari.
  • 2018: Launch of Seamont project in Walkeshwar, Mumbai.
  • 2018: Launch of Upper Thane project in Thane.
  • 2019: Joint Venture with ESR Mumbai 3 Pte. Limited for developing an industrial park at Palava.
  • 2019: Sale of NCP commercial tower 1 for a total consideration of Rs 10,550 million through sale of shares of subsidiary company to Varde Group, Singapore.
  • 2020: Repaid the bond of $325 million and raised the fresh bond of $225 million due 2023 by subsidiary, Lodha Developers International Limited.
  • 2020: Launch of ‘Lodha Crown’ in Thane.
  • 2021: Launch of ‘Lodha Villa Royale’ in Thane.


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