Motilal Oswal Sees 58% Upside in Lodha Developers: A Strong Bet on Real Estate Growth
Motilal Oswal has reiterated its 'Buy' rating on Lodha Developers, predicting a 58% upside potential. The brokerage firm highlights Lodha's steady project acquisitions and disciplined execution as key drivers of sustained performance.
Lodha DevelopersReal EstateMotilal OswalStock MarketInvestmentReal Estate NewsNov 19, 2025
Motilal Oswal has noted that Lodha Developers has consistently delivered strong performance across key operating metrics. The firm believes that as the company continues to tap into strong growth and consolidation opportunities in the sector, this operational momentum will be sustained. Lodha's presales are expected to grow at a compound annual growth rate (CAGR) of 22%, driven by healthy collections and a comfortable net debt position of 0.25x by the end of H1FY26, despite significant business development additions totaling ₹25,000 crore.
The Pune business segment is scaling up well and is projected to deliver a 40% year-over-year (YoY) growth in sales. Additionally, Lodha has completed its pilot phase in Bengaluru and is now in the growth stage, with a target of achieving a 12% market share by the end of the decade. The company is also initiating a pilot in the National Capital Region (NCR) to expand its geographical presence.
Lodha is further strengthening its commercial and industrial portfolio to drive robust rental income. At Palava, a key project, sales are expected to rise by 20% YoY, supported by the completion of the Airoli-Katai tunnel by the end of FY26, along with other ongoing infrastructure developments.
Motilal Oswal emphasizes that Lodha's consistent 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 confidence in Lodha is shared by many analysts; out of 18 analysts covering the stock, 15 have a 'Buy' rating, one recommends a 'Sell', and two suggest a 'Hold'.
Shares of Lodha Developers Ltd. closed 2.56% higher on Tuesday at ₹1,189. However, the stock has fallen 13% so far this year, presenting an attractive entry point for investors looking to capitalize on the company's growth potential.
In summary, Motilal Oswal's positive outlook on Lodha Developers is based on the company's strong operational performance, strategic project acquisitions, and disciplined execution. Investors should consider these factors when evaluating the stock for their portfolios.
Frequently Asked Questions
What is the price target set by Motilal Oswal for Lodha Developers?
Motilal Oswal has set a price target of ₹1,888 for Lodha Developers, implying an upside potential of 58% from the current stock price.
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 market share target for Lodha in Bengaluru?
Lodha has set a target of achieving a 12% market share in Bengaluru by the end of the decade.
What is the expected sales growth for the Pune business segment?
The Pune business segment is expected to deliver a 40% year-over-year (YoY) growth in sales.
What infrastructure project is expected to boost sales at Palava?
Sales at Palava are expected to rise by 20% YoY, supported by the completion of the Airoli-Katai tunnel by the end of FY26, along with other ongoing infrastructure developments.
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