LODHA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | LODHA | Market Cap | 89,700 Cr. | Current Price | 898 ₹ | High / Low | 1,534 ₹ |
| Stock P/E | 30.7 | Book Value | 222 ₹ | Dividend Yield | 0.47 % | ROCE | 14.6 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 880 ₹ | DMA 200 | 1,048 ₹ |
| Chg in FII Hold | -2.25 % | Chg in DII Hold | 1.45 % | PAT Qtr | 794 Cr. | PAT Prev Qtr | 1,146 Cr. |
| RSI | 58.9 | MACD | 14.6 | Volume | 30,57,364 | Avg Vol 1Wk | 39,66,161 |
| Low price | 651 ₹ | High price | 1,534 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.48 |
| 52w Index | 28.0 % | Qtr Profit Var | 7.12 % | EPS | 29.2 ₹ | Industry PE | 27.0 |
📊 Lodha (Macrotech Developers) shows moderate fundamentals with a market cap of ₹89,700 Cr. and current price of ₹898, trading below its 200 DMA (₹1,048). Efficiency metrics are decent — ROE at 14.0% and ROCE at 14.6% — but valuations are slightly stretched with a P/E of 30.7 compared to the industry average of 27.0. Debt-to-equity at 0.48 indicates moderate leverage. EPS at ₹29.2 is healthy, though quarterly PAT dropped from ₹1,146 Cr. to ₹794 Cr., reflecting earnings volatility. PEG ratio at 0.59 suggests fair growth-adjusted valuation. Institutional flows are mixed, with FIIs reducing (-2.25%) and DIIs increasing (+1.45%).
💡 Entry Zone: ₹870–₹890 (near 50 DMA support)
📈 Long-Term Holding: Suitable for cautious accumulation, but investors should monitor debt levels and earnings consistency. Best for patient investors willing to hold through cyclical real estate trends.
✅ Positive
- ROE (14.0%) and ROCE (14.6%) show decent efficiency
- EPS of ₹29.2 supports earnings visibility
- PEG ratio (0.59) indicates fair growth-adjusted valuation
- DII holdings increased (+1.45%), showing domestic confidence
- Dividend yield of 0.47% adds shareholder value
⚠️ Limitation
- Valuation slightly above industry average (P/E 30.7 vs 27.0)
- Quarterly PAT decline (₹1,146 Cr. → ₹794 Cr.)
- Moderate debt-to-equity ratio (0.48)
- FII holdings decreased (-2.25%), showing reduced foreign interest
📉 Company Negative News
- Sequential profit decline in recent quarter
- Stock trading below 200 DMA, indicating long-term weakness
📈 Company Positive News
- Strong EPS base (₹29.2)
- DII support increased (+1.45%)
- Technical momentum improving (RSI 58.9, MACD positive)
🏭 Industry
- Real estate sector trades at lower P/E (27.0), making Lodha slightly expensive
- Sector outlook supported by urban housing demand and infrastructure growth
🔎 Conclusion
Lodha is fundamentally stable with decent efficiency and fair growth-adjusted valuation, but earnings volatility and moderate debt limit upside. Entry near ₹870–₹890 offers a risk-managed opportunity. Long-term investors should accumulate cautiously, focusing on sector recovery and earnings stability.