Shares of Macrotech Developers touched a 52-week high of Rs 611.45, up 5% on the BSE intraday on Friday on the upbeat outlook. Shares of the property developer have soared 27% in the past month, compared with a 1.7% gain in the S&P BSE Sensex. It hit an all-time high of Rs 769.30 (adjusted for 1:1 bonus) on December 1, 2021.

Macrotech Developers (MDL), formerly known as Lodha Developers, is one of India’s largest real estate developers, with market leadership in Mumbai and Thane. The company also has the largest land bank in the country, totalling over 4,300 acres as of March 31, 2023 (including its ongoing and planned projects). MDL focuses on residential developments in MMR with projects in Pune and Bengaluru.

Backed by healthy end-user demand, a strong distribution pipeline and healthy affordability, MDL’s operating performance is expected to remain healthy in FY24 while maintaining a debt reduction trajectory.

MDL enjoys healthy pre-sales due to its diversified product segments and strong reputation. With an unsold inventory of around Rs 30,000 crore on March 31, 2023, and 10.6 million sq ft of new launches in FY24, pre-sales in the residential segment are expected to remain strong. According to ICRA, through the historic land acquisition, MDL has access to a sizeable parcel of land (4,300 acres as of March 31, 2023, of which 300 acres are dedicated to digital infrastructure), providing significant potential for future project development potential.

The rating agency reaffirmed MDL’s long-term rating on Tuesday and revised its outlook to positive from stable.

The long-term rating outlook revision is positive for MDL’s strong operating performance in FY23, characterised by healthy collection growth and cash flow from operations (CFO), which supports lower debt levels. MDL’s operational performance is expected to remain healthy in FY24, supported by healthy end-user demand, a strong distribution pipeline and healthy affordability while maintaining a debt reduction trajectory, ICRA said.