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Hidden Gem - Max Estates Limited

ICICIdirect Research 18 Jul 2025 DISCLAIMER

Max Estates Limited, is the real estate arm of Max Group, primarily focused in the Delhi-NCR region across residential and commercial developments. Residential portfolio comprise ~11msf having ~₹ 21,500 crore GDV and commercial assets has an annualised rental of ₹ 146 crore for operational assets.
Maxest is targeting to grow its pre-sales bookings at 12-15% CAGR over FY25-FY28E to reach ₹ 7500-8000 crore annualised pre-sales in FY28. For FY26, it is eyeing ₹ 6000-6500 crore pre-sales, which will be driven by three new project launches having an aggregate GDV of ₹ 9500 crore. 
The longer-term pre-sales momentum is expected to be sustained by its strong business development plans. It plans to achieve ₹ 21000 crore GDV projects by FY28, of which it has acquired ₹ 14000 crore while balance ₹ 7000 crore would be added over the next three years.
Maxest’s rental income grew by 67% YoY to ₹ 110 crore in FY25 led by addition of two new assets. Consequently, it has four operational commercial assets totalling ~1.3 msf with an annualised rental income (as on March 2025) of ₹ 146 crore. It will be adding four commercial assets totalling ~4.4 msf over the next five+ years. Hence, its annualised rental income at peak occupancy from its commercial assets is slated to increase to ₹ 723 crore.
Maxest stays on course with respect to maintaining healthy pre-sales growth trajectory for residential business over the next three years and increasing annuity income multi-fold over the longer tenure.
The company is currently trading marginally higher (~4%) than its NAV. We have a Buy rating on the stock with the SOTP based price target of ₹ 690.

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