Shares of Macrotech Developers Ltd. rose the most in a week on Friday after ICRA Ltd. upgraded the company from 'stable' to 'positive'.
The credit rating agency increased its rating on the back of strong operating performance in FY23, led by healthy growth in collections and cash flows from operations, according to a June 6 note.
Pre-sales for the company grew 34% on a year-on-year basis to Rs 12,064, while gross debt reduced 21% to around Rs 9,100 crore in the same period, ICRA said.
The rating agency expects the debt to further narrow, leading the gross debt to operating cash flow ratio to improve to around 1.5 times by the end of fiscal 2024.
ICRA expects pre-sales to grow to Rs 14,500 crore for the same period, driven by a healthy mix across different product segments and price points, it said in the note.
Shares of Macrotech Developers rose 4.28% to Rs 605 apiece, compared to a 0.05% fall in the Nifty 50 as of 10:53 a.m. The scrip rose as much as 5.32% intraday, the most in a week since May 31, while the relative strength index was at 76, suggesting the stock may be overbought.
Of the 16 analysts tracking the company, 13 maintain a 'buy' rating, and three suggest a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 5.2%.
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