- Lodha Developers' net debt-to-equity ratio remains low at 0.25x despite Rs 250 billion development.
- The company aims to become net cash positive by FY27 with collections rising to Rs 294 billion by FY28.
- Commercial leasing is expected to double with 85% occupancy projected by FY28.
Despite aggressive business development worth Rs 250 billion in H1 FY26, Lodha's net debt-to-equity remains at 0.25x, and the company expects to turn net cash by FY27. Collections are projected to rise to Rs 294 billion by FY28, while commercial leasing is set to double, with 85% occupancy expected by FY28.
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Motilal Oswal Report
Motilal Oswal has reiterated its 'Buy' rating on Lodha Developers Ltd., setting a target price of Rs 1,888 per share, signaling a 58% upside from the current market price of Rs 1,192.
The brokerage cites strong presales momentum, strategic expansion into new markets, and robust infrastructure tailwinds as key drivers of growth.
The real estate major is gearing up for record quarterly presales of Rs 60 billion each in Q3 and Q4 FY26, backed by 11 new project launches and five phase expansions across Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. Lodha expects presales to grow at a 22% CAGR, reaching Rs 317 billion by FY28.
Financial Outlook
Despite aggressive business development worth Rs 250 billion in H1 FY26, Lodha's net debt-to-equity remains at 0.25x, and the company expects to turn net cash by FY27. Collections are projected to rise to Rs 294 billion by FY28, while commercial leasing is set to double, with 85% occupancy expected by FY28.
Motilal Oswal values Lodha on a sum-of-the-parts basis, factoring in residential, commercial, industrial, and Palava segments, and applying a 40% premium to NAV to arrive at the Rs 1,888 target price.
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