Motilal Oswal Recommends Lodha Developers for a Potential 58% Upside
Motilal Oswal has reaffirmed its 'Buy' rating on Lodha Developers, predicting a 58% upside potential for the Mumbai-based real estate and construction company. The brokerage firm cites steady performance and strong growth prospects as key factors.
Lodha DevelopersReal EstateMotilal OswalStock MarketInvestmentReal Estate MumbaiNov 19, 2025
Motilal Oswal has set a price target of ₹1,888 for Lodha Developers, which implies a significant upside potential of 58% from Tuesday's closing price. The brokerage firm's positive outlook is based on Lodha's steady performance across key operating metrics and its strategic initiatives to tap into strong growth and consolidation opportunities in the sector.
Lodha Developers has demonstrated a consistent operational momentum, with presales estimated to grow at a compound annual growth rate (CAGR) of 22%. This growth is supported by healthy collections and a comfortable net debt position of 0.25x by the end of H1FY26, despite aggressive business development activities worth ₹25,000 crore. The company's expansion into Pune, Bengaluru, and the National Capital Region (NCR) further underscores its commitment to growth.
In Pune, Lodha's business is scaling up rapidly, with sales expected to grow by 40% year-over-year (YoY). The company has completed its pilot phase in Bengaluru and is now in the growth stage, targeting a 12% market share by the end of the decade. Additionally, Lodha is initiating a pilot in the NCR, further expanding its presence in key markets.
Lodha is also focusing on strengthening its commercial and industrial portfolio to drive strong rental income. At Palava, one of the company's flagship projects, sales are expected to rise by 20% YoY, supported by the completion of the Airoli-Katai tunnel by the end of FY26 and other ongoing infrastructure developments.
Motilal Oswal emphasizes that Lodha's steady pace of project acquisitions enhances long-term visibility, while disciplined and timely execution ensures that this momentum translates into sustained performance. The brokerage firm's positive outlook is shared by many analysts, with 18 analysts covering Lodha Developers, 15 of whom have a 'Buy' rating, one a 'Sell' rating, and two a 'Hold' rating.
Despite the positive outlook, shares of Lodha Developers Ltd. closed 2.56% higher on Tuesday at ₹1,189, but the stock has fallen 13% so far this year. Investors are advised to consider these insights and consult with certified experts before making any investment decisions.
Lodha Developers is a leading real estate and construction company known for its high-quality projects and strategic expansion. The company's focus on disciplined execution and long-term growth makes it an attractive investment opportunity, according to Motilal Oswal.
Frequently Asked Questions
What is Motilal Oswal's rating for Lodha Developers?
Motilal Oswal has reaffirmed its 'Buy' rating for Lodha Developers, with a price target of ₹1,888, implying a 58% upside potential.
What are the key factors driving Lodha Developers' growth?
Lodha Developers' growth is driven by steady performance across key operating metrics, healthy collections, a comfortable net debt position, and strategic expansion into key markets like Pune, Bengaluru, and the NCR.
What is the expected growth rate for Lodha Developers' presales?
Lodha Developers' presales are estimated to grow at a compound annual growth rate (CAGR) of 22%, supported by healthy collections and a comfortable net debt position.
What is the current stock price of Lodha Developers?
As of Tuesday, the shares of Lodha Developers Ltd. closed at ₹1,189, up 2.56%.
What is the significance of the Airoli-Katai tunnel for Lodha's Palava project?
The Airoli-Katai tunnel, expected to be completed by the end of FY26, is a significant infrastructure development that will support a 20% YoY growth in sales at Lodha's Palava project.
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