Stock Of The Day: Macrotech Momentum Turns Bullish At Key Support; Bags Kotak's 'Buy' Upgrade

Shares of Macrotech Developers Ltd. saw a momentum switch to the upside — following a 26% decline from a recent peak — at their key support level, while Kotak Securities upgraded the stock to 'buy'.

Excluding today's session, the scrip has fallen in 11 out of the 12 trading days this year, a plunge of nearly 20%. Shares of the real estate company have fallen over 30% since hitting an all-time high in July last year.

The over 5% surge in Friday's intraday rally erased the losses of the last three sessions. The stock, however, is still trading below the long term and short term key moving averages.

In a short time, the scrip saw its momentum switch on the upside with an engulfing candle. However, the candle needs to close similarly to confirm the momentum change.

The switch comes near the key support level of Rs 1,120, which is also 2 standard deviations below the 14-day moving average. The immediate resistance for the stock will be near the Rs 1,280 mark. A breakout of that could send the stock to Kotak's target of Rs 1,340 apiece.

The stock rose as much as 5.67% to Rs 1,190 per share on Thursday, compared to the 0.62% fall in Nifty 50. The relative strength index was at 34.

Thirteen out of the 19 analysts tracking the company have a 'buy' rating on the stock, four suggest a 'hold' and two have a 'sell', according to Bloomberg data. The average of the 12-month analysts' price target implies a potential upside of 21%.

Kotak Securities upgraded the stock to 'buy' from 'add' with a target price of Rs 1,340 apiece, implying an upside of 18.8% from previous close.

The brokerage noted its strong and consistent performance across parameters with its deeper presence in new cities to keep earnings growth strong.

The company recorded a pre-sales 34% CAGR over fiscal 2021-24 and Kotak expects 21% CAGR over fiscal 2024-27. "Infrastructure-led improvement for Palava to lead to re-rerating of land parcel."

At 10 times implied enterprise value-to-fiscal 2026 Ebitda, Lodha offers an attractive entry point, Kotak said. Macrotech Developers was earlier known as Lodha Developers.

Macrotech Developers posted robust figures for the third quarter of financial year 2025. The company reported record-breaking pre-sales and significant growth in collections, as it continues to strengthen its foothold in key markets like Mumbai, Bengaluru, and Pune.

The company highlighted a 32% year-on-year growth in pre-sales for the third quarter, reaching Rs 4,510 crore. This strong performance contributed to total pre-sales of approximately Rs 12,820 crore for the first nine months of financial year 2025, marking a 25% year-on-year increase.