- Lodha Developers shows steady performance and plans to leverage growth opportunities
- Motilal Oswal reaffirms Buy rating with a target price of Rs 1,888 for Lodha Developers
- Strong presales growth expected to boost cash flows, revenue, and profitability
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.
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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.
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