LODHA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | LODHA | Market Cap | 88,716 Cr. | Current Price | 888 ₹ | High / Low | 1,534 ₹ |
| Stock P/E | 30.4 | Book Value | 222 ₹ | Dividend Yield | 0.48 % | ROCE | 14.6 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 888 ₹ | DMA 200 | 1,027 ₹ |
| Chg in FII Hold | -2.25 % | Chg in DII Hold | 1.45 % | PAT Qtr | 794 Cr. | PAT Prev Qtr | 1,146 Cr. |
| RSI | 51.4 | MACD | 5.27 | Volume | 11,43,583 | Avg Vol 1Wk | 26,61,691 |
| Low price | 651 ₹ | High price | 1,534 ₹ | PEG Ratio | 0.58 | Debt to equity | 0.48 |
| 52w Index | 26.8 % | Qtr Profit Var | 7.12 % | EPS | 29.2 ₹ | Industry PE | 26.3 |
📊 Core Financials: Lodha Group reported quarterly PAT of ₹794 Cr (down from ₹1,146 Cr), showing a decline in profitability. ROE at 14.0% and ROCE at 14.6% reflect moderate efficiency. Debt-to-equity ratio of 0.48 indicates moderate leverage. EPS at ₹29.2 is decent, supported by strong revenue base, though margins remain under pressure.
💹 Valuation Indicators: Stock P/E of 30.4 is slightly above industry average (26.3), suggesting mild overvaluation. Book value at ₹222 vs CMP ₹888 shows a premium valuation. PEG ratio of 0.58 indicates healthy earnings growth potential. Intrinsic value appears supportive of long-term upside, though near-term valuations are stretched.
🏢 Business Model & Advantage: Lodha operates in real estate development, with a strong presence in residential and commercial projects. Competitive advantage lies in scale, brand recognition, and diversified portfolio. However, cyclical demand and high debt levels in the sector pose risks.
📈 Entry Zone & Holding Guidance: The stock trades near DMA 50 (₹888) and below DMA 200 (₹1,027), showing weakness. RSI at 51.4 indicates neutral momentum. A better entry zone would be closer to ₹800–₹850. Long-term holding may be viable given industry demand, but fresh entry at current levels requires caution.
Positive
- ✅ Strong brand recognition and diversified real estate portfolio
- ✅ EPS at ₹29.2, reflecting solid earnings base
- ✅ DII holding increased by 1.45%, showing domestic institutional confidence
Limitation
- ⚠️ Quarterly PAT decline (₹1,146 Cr → ₹794 Cr)
- ⚠️ Moderate ROE (14.0%) and ROCE (14.6%) efficiency
- ⚠️ Debt-to-equity ratio at 0.48, indicating leverage risk
Company Negative News
- 📉 FII holding decreased by 2.25%, showing reduced foreign investor confidence
Company Positive News
- 📈 EPS stability and PEG ratio of 0.58 indicate growth potential
- 📈 DII holding increased by 1.45%, reflecting domestic support
Industry
- 🌐 Real estate industry PE at 26.3, reflecting moderate valuations
- 🌐 Long-term demand driven by urbanization and infrastructure growth
Conclusion
🔎 Lodha Group shows moderate efficiency and strong brand presence, but declining quarterly profits and leverage risks limit attractiveness. Entry near ₹800–₹850 offers better risk-reward. Long-term investors may hold cautiously, while new investors should wait for correction before buying.
For deeper insights, you could explore a peer comparison or a valuation analysis to assess its position against competitors and intrinsic value.