Jefferies Recommends Lodha Developers for a 44% Upside: A Prime Real Estate Play
A leading real estate stock has gained investor attention after Jefferies highlighted it as a prime beneficiary of Mumbai’s ongoing $80 billion-plus infrastructure upgrade. The brokerage cited the opening of the city’s second international airport and the company’s large 4,500-acre land bank on the outskirts as key factors likely to boost real estate values. Lodha Developers Ltd, with a market capitalization of Rs. 1,12,729.44 crore, closed at Rs. 1129 on 8th October 2025, Wednesday.
Jefferies has assigned a ‘Buy’ rating to Lodha Developers, with a target price of Rs. 1,625, implying a potential upside of 43.93 percent from its closing price on 8th October 2025, Wednesday. The brokerage highlighted the company as a major beneficiary of Mumbai’s extensive infrastructure development, including the upcoming second international airport, which forms part of an ongoing $80 billion-plus transformation expected to elevate real estate values.
Lodha’s sizable 4,500-acre land bank on the city’s outskirts positions it well to capitalize on this growth, with land prices having increased nearly eightfold over the past four years. The brokerage expects Mumbai’s strong market performance, coupled with Lodha’s geographic expansion, to drive a 20 percent compound annual growth rate in presales. Jefferies also noted that recent market concerns over a soft first half have made the company’s ex-Palava business particularly attractive, as it currently trades at roughly 2x EV/sales.
For Q2FY26, Lodha reported pre-sales of Rs. 4,570 crore, representing a 7 percent year-on-year increase and a 3 percent sequential rise. Collections for the quarter stood at Rs. 3,480 crore, up 13 percent from the same period last year. The company anticipates a stronger pace of launches in the second half of the year and has reaffirmed its full-year bookings guidance of Rs. 21,000 crore. Net debt rose sequentially by Rs. 300 crore to Rs. 5,370 crore, driven by record business development in H1FY26 and ongoing project approval costs.
Lodha is one of India’s premier luxury real estate developers, focused on creating world-class residential, commercial, and digital infrastructure projects. The company has delivered approximately 100 million square feet and is developing over 110 million square feet across ongoing and planned projects. Lodha emphasizes integrated, self-contained ecosystems, robust infrastructure, and digital conveniences through its Bellevie platform, transforming resident lifestyles. Committed to net-zero carbon emissions by 2050, Lodha is leading low-carbon initiatives within the real estate sector, while expanding its growing digital infrastructure business.
