LODHA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials & Profitability

Earnings & Growth: Quarterly PAT came in at ₹644 Cr, down from ₹742 Cr, but YoY profit growth stands at a strong 42.7%. EPS of ₹23.4 is solid for a ₹1,204 stock.

Return Metrics

ROE: 13.4% and ROCE: 14.8% — healthy, indicating efficient capital deployment.

Debt Profile: Debt-to-equity at 0.41 — moderate and improving, down from 0.44 last year

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Dividend Yield: 0.35% — modest, with consistent payouts including a ₹4.25/share dividend in August 2025

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💸 Valuation Indicators

Metric Value Insight

P/E Ratio 51.5 Richly valued vs. industry PE of 40.7.

P/B Ratio ~6.27 Elevated relative to book value ₹192.

PEG Ratio 1.79 Fairly priced — growth is moderately valued.

🔍 Conclusion: Lodha is trading at a premium, but strong earnings growth and improving debt metrics justify part of the valuation.

🏢 Business Model & Competitive Edge

Core Operations: Lodha Developers is a leading real estate developer with a diversified portfolio across residential, commercial, and industrial segments.

Strategic Strengths

Revenue for FY25 surged to ₹13,779 Cr from ₹10,316 Cr in FY24

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Net profit for FY25 hit ₹2,768 Cr, up from ₹1,567 Cr in FY24

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ROE improved to 13.69% in FY25 from 8.86% in FY24

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Institutional sentiment is mixed: FII holdings up 0.25%, DII down 0.17%.

Growth Outlook

Analysts forecast a target price of ₹1,478.29, implying ~22.7% upside

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Recent MoU with Maharashtra Govt for a ₹30,000 Cr Green Data Centre Park adds long-term growth visibility

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📉 Technicals & Entry Zone

RSI: 46.2 — neutral, offering buying comfort.

MACD: −19.5 — bearish divergence, suggesting short-term caution.

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

📌 Suggested Entry Zone: ₹1,150–₹1,180 — near technical support and below moving averages.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, improving debt profile, and sector tailwinds support long-term compounding.

Buy on Dips: Prefer entry near ₹1,160, especially if RSI dips below 45.

Monitor: Execution of large-scale projects, margin trends, and regulatory developments.

You can explore Moneycontrol’s full financial breakdown and recent developments or Simply Wall St’s ROE analysis and earnings trajectory for deeper insights. Let me know if you'd like a peer comparison with Oberoi Realty or Prestige Estates next.

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