Navi Mumbai Airport: Lodha Developers Poised for 46% Stock Rally, Says Jefferies
The inauguration of the Navi Mumbai International Airport is set to transform the property landscape of the city. Jefferies identifies Lodha Developers as a major beneficiary, with the potential for a 46% stock rally due to extensive land holdings and infrastructure upgrades.
Navi Mumbai International AirportLodha DevelopersMumbai PropertyInfrastructure UpgradesStock RallyReal Estate MumbaiOct 08, 2025
Jefferies noted that Lodha’s large land bank positions it as a significant beneficiary of the new airport. This is part of an $80 billion infrastructure overhaul that includes the Mumbai Trans Harbour Link (MTHL), new metro lines, and coastal road extensions. These projects are already boosting land valuations in the extended suburbs.
“The improved infrastructure has partly reflected in a Palava land price rise already,” Jefferies said, referring to Lodha’s 4,500-acre land bank in Palava and Upper Thane. The Palava township, which spans 1,000 acres and houses around 30,000 families, has seen warehouse land prices jump from Rs 20–30 million per acre in 2019–22 to Rs 210 million in 2024–25. Residential sales imply township land values around Rs 350 million per acre.
Jefferies believes that continued infrastructure development will accelerate the monetization and premiumization of Lodha’s assets as new projects are rolled out in central and western Mumbai and North Bangalore.
Lodha recorded Rs 46 billion in pre-sales in the first half of FY26, up 8% year-on-year, representing 43% of its Rs 210 billion annual target. Jefferies said the company’s first-half performance was consistent with its guidance, though slightly below the 20% growth target for the year.
The brokerage argued that the stock’s 18% decline this year makes valuations compelling. Lodha now trades at 2x enterprise value to sales (excluding Palava) and at a 15% discount to net asset value—levels Jefferies said are among the lowest since the company listed.
“Our price target of Rs 1,625 is based on a 15.0x price-to-earnings multiple on one-year forward normalized margins, reflecting a potential 46% upside,” the brokerage said. Jefferies also projected an upside scenario of Rs 1,800 per share if land monetization accelerates faster than expected, but warned that delays in project launches or higher interest rates could drag the stock down to Rs 1,000 per share.
Jefferies concluded that Lodha remains a 'marquee' beneficiary of Mumbai’s sweeping infrastructure upgrade, with the new airport catalyzing higher land values and stronger pre-sales momentum.
Frequently Asked Questions
What is the Navi Mumbai International Airport and its significance?
The Navi Mumbai International Airport is a new airport set to be inaugurated in Navi Mumbai, India. It is expected to significantly transform the property landscape and boost economic development in the region, particularly with the infrastructure upgrades it brings.
How much land does Lodha Developers own near the new airport?
Lodha Developers owns a 4,500-acre land bank in Palava and Upper Thane, which is near the Navi Mumbai International Airport. This extensive land holding positions Lodha as a major beneficiary of the new infrastructure.
What is the projected stock price target for Lodha Developers?
Jefferies has set a price target of Rs 1,625 for Lodha Developers, based on a 15.0x price-to-earnings multiple on one-year forward normalized margins, reflecting a potential 46% upside. An upside scenario of Rs 1,800 per share is also projected if land monetization accelerates faster than expected.
What are the risks to Lodha Developers' stock performance?
The risks to Lodha Developers' stock performance include delays in project launches and higher interest rates, which could drag the stock down to Rs 1,000 per share.
What other infrastructure projects are boosting land values in Navi Mumbai?
Other infrastructure projects boosting land values in Navi Mumbai include the Mumbai Trans Harbour Link (MTHL), new metro lines, and coastal road extensions. These projects are part of an $80 billion infrastructure overhaul in the region.
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