LODHA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Rating: 4.1

Here’s a full-spectrum analysis of Lodha Developers Ltd. (LODHA)

🧮 Core Financials

Profitability

ROE: 14.7%, ROCE: 15.6% — solid, though not industry-leading.

Quarterly PAT

₹675 Cr. vs ₹922 Cr. — 42% decline, likely due to seasonal or project timing factors.

Debt Profile

Debt-to-equity: 0.35 — moderate leverage, manageable for a real estate firm.

Cash Flow

Strong operating cash flow supported by high pre-sales and collections

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📉 Valuation Metrics

Metric Value Insight

P/E Ratio 42.0 Slightly above industry PE of 40.2 — fair valuation

P/B Ratio ~6.17 Reasonable given brand strength and growth outlook

PEG Ratio 1.31 Indicates growth priced in, not undervalued

EPS ₹29.7 Consistent earnings per share

🏢 Business Model & Competitive Edge

Core Focus: Residential real estate with deep penetration in Mumbai, Pune, and Bengaluru.

Recent Performance

Q1FY26 revenue grew 22.66% YoY to ₹3,491.7 Cr.

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EBITDA margin at 34.4%, reflecting operational efficiency

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Strategic Moves

Added ₹22,700 Cr. in new projects across top cities

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Strong pre-sales momentum despite macro headwinds

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Competitive Advantage

Robust launch pipeline, brand equity, and execution capabilities.

📈 Technical & Sentiment Indicators

RSI: 30.9 — approaching oversold zone.

MACD: -37.2 — bearish momentum.

Volume: Below average — possible accumulation phase.

DMA 50 & 200: Price below both — short-term weakness.

🎯 Entry Zone & Long-Term View

Suggested Entry: ₹1,200–₹1,250 — near support and RSI oversold zone.

Target Range: ₹1,450–₹1,600 over long term, based on project pipeline and earnings recovery.

Holding View: Strong fundamentals, expanding footprint, and resilient demand make it a worthy long-term hold, especially for investors comfortable with real estate cycles.

Want to explore its peers like DLF or Godrej Properties next? Or dive into its launch pipeline and pre-sales trends?

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Moneycontrol

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Business Standard

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Zee Business

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