LODHA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | LODHA | Market Cap | 91,714 Cr. | Current Price | 918 ₹ | High / Low | 1,534 ₹ |
| Stock P/E | 32.0 | Book Value | 202 ₹ | Dividend Yield | 0.46 % | ROCE | 14.6 % |
| ROE | 13.2 % | Face Value | 10.0 ₹ | DMA 50 | 1,059 ₹ | DMA 200 | 1,173 ₹ |
| Chg in FII Hold | -0.62 % | Chg in DII Hold | 0.44 % | PAT Qtr | 1,146 Cr. | PAT Prev Qtr | 336 Cr. |
| RSI | 32.4 | MACD | -44.2 | Volume | 11,98,044 | Avg Vol 1Wk | 39,63,272 |
| Low price | 864 ₹ | High price | 1,534 ₹ | PEG Ratio | 1.11 | Debt to equity | 0.54 |
| 52w Index | 8.04 % | Qtr Profit Var | 37.8 % | EPS | 28.7 ₹ | Industry PE | 30.2 |
📊 Financials: Lodha Group (Macrotech Developers) has a market cap of 91,714 Cr. with quarterly PAT rising sharply to 1,146 Cr. from 336 Cr. (37.8% growth). ROE at 13.2% and ROCE at 14.6% indicate moderate efficiency. Debt-to-equity ratio of 0.54 shows a leveraged balance sheet, though manageable. EPS stands at 28.7 ₹, reflecting decent profitability. Cash flows remain cyclical given the real estate sector’s dependency on project completions.
💹 Valuation: Current P/E of 32.0 is slightly above the industry average of 30.2, suggesting fair-to-mild overvaluation. P/B ratio is ~4.54 (918 ₹ / 202 ₹), which is expensive relative to book value. PEG ratio of 1.11 indicates growth is reasonably priced. Intrinsic value appears close to current levels, but upside depends on sustained earnings momentum and debt management.
🏢 Business Model & Competitive Advantage: Lodha operates in real estate development, focusing on premium housing and commercial projects. Its competitive advantage lies in brand recognition, scale, and strong presence in Mumbai and other metros. However, the business is cyclical, highly dependent on economic conditions, interest rates, and regulatory policies.
📈 Entry Zone: With RSI at 32.4 (near oversold) and support around 880–900 ₹ (close to 52-week low of 864 ₹), accumulation in this zone is favorable. Current price at 918 ₹ offers a reasonable entry for long-term investors, especially if debt levels are managed effectively.
🕰️ Long-Term Holding Guidance: Lodha is fundamentally strong with growth potential in India’s urban housing demand. Long-term holding is recommended, but investors should monitor debt levels and sector cyclicality closely.
Positive
- Strong quarterly PAT growth (1,146 Cr. vs 336 Cr.).
- Moderate ROE (13.2%) and ROCE (14.6%).
- PEG ratio of 1.11 indicates growth is fairly priced.
- DII holdings increased by 0.44%, showing domestic investor confidence.
Limitation
- P/E (32.0) slightly above industry average (30.2).
- P/B ratio (~4.54) is expensive.
- Debt-to-equity ratio at 0.54 shows reliance on leverage.
- FII holdings decreased by 0.62%, showing reduced foreign confidence.
Company Negative News
- High leverage compared to peers.
- Stock trading below DMA 50 and DMA 200, indicating weak momentum.
Company Positive News
- Quarterly PAT surged significantly, showing operational strength.
- Domestic institutional investors increasing stake.
Industry
- Real estate sector benefits from urbanization and housing demand.
- Industry P/E at 30.2 highlights Lodha’s fair valuation relative to peers.
Conclusion
⚖️ Lodha is a fundamentally strong real estate developer with brand strength and growth potential. Entry around 880–900 ₹ is favorable, and long-term holding is recommended, though investors should remain cautious of leverage and sector cyclicality.
Would you like me to also prepare a comparative HTML table showing Lodha vs. other real estate peers for a clearer valuation and profitability perspective?