Shares of Macrotech Developers continue to rally, climbing 3% today

The Indian benchmark indices were trading higher, driven by robust gains in the telecommunications and metal sectors. The strong upswing in real estate stocks has continued to impress investors. The BSE Realty sectoral index gained more than 1% today, having soared more than 20% in the last six months. 

One of the real estate stocks that benefited the most from the rally was Macrotech Developers Ltd (Lodha). Shares of Macrotech Developers Ltd, the top gainer in the BSE Realty pack today, surged more than 3%. Shares have climbed around 30% in just the past one month, resulting in a 70% return in the last three months! One of the key drivers of this rally could be increased buying interest following the company’s announcement of a bonus issue. 

The company has allotted equity shares of Rs 10 each as fully paid-up bonus equity shares, in the ratio of one new fully paid-up equity share of Rs 10 each for every existing one equity share of Rs 10 each. 

Taking into account the company’s quarterly performance, on a consolidated basis, it reported a decline of 5.49% from Rs 3,444.56 crore registered in Q4FY22, recording total revenue of Rs 3,255.38 crore in Q4FY23. When comparing the net profit for Q4FY23 to the same quarter last year, it climbed 39.01% from Rs 535.46 crore to Rs 744.36 crore. 

Macrotech Developers Ltd is primarily in the real estate development business. It is one of India’s leading real estate developers, with operations in the MMR (Mumbai Metropolitan Region) and Pune markets. 

According to CRISIL Ratings, residential real estate developers in India’s top six cities are likely to record an 8-10% growth in sales in the current financial year 2023-24, despite a surge in interest rates and home prices in the last financial year. 

Keep a close eye on this stock for the upcoming sessions!