Lodha Developers Shares May Rally 77% Says Motilal Oswal — Check Stock Rating, Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Motilal Oswal has reaffirmed its Buy rating on Lodha Developers Ltd. with a target price of Rs 1,888, signaling a potential 77% upside from the current market price of Rs 1,064.

The brokerage cites Lodha’s strong execution track record, aggressive business development, and multi-city expansion as key drivers of future growth.

Valuation and view

Lodha Developers has delivered steady performance across its key parameters, and as it prepares to capitalize on strong growth and consolidation opportunities, the brokerage expect this consistent operational performance to continue.

Strong presales growth will drive a rapid scale-up in operations across key parameters, such as cash flows, revenue, and profitability, enhancing confidence in the company's execution capabilities and future growth potential.

At Palava, Lodha Developers has a development potential of 600 msf. However, Motilal Oswal assume that a portion of this would be monetized through industrial land sales and values 250msf of residential land to be monetized at Rs 637 billion over the next three decades.

Key risks:

• a slowdown in residential absorption,

• a delay in the monetization of forthcoming projects, and

• slower business development convergence.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.