Investors looking for a promising real estate stock to add to their portfolio may want to consider Lodha Developers, as the company is expected to see significant growth in the coming years. With a strong track record of project acquisitions and disciplined execution, Lodha Developers is poised to deliver sustained performance and drive strong rentals.
Strong Presales and Debt Management
Lodha Developers' presales are expected to clock a 22% CAGR, supported by healthy collections and debt at comfortable levels of 0.25x by the end of 1HFY26. This is despite aggressive business development additions of INR250b, demonstrating the company's ability to manage its debt and drive growth.
Regional Growth and Expansion
The company is seeing healthy growth in various regions, including Pune, which is expected to deliver 40% YoY growth in sales. Additionally, Lodha Developers has completed its pilot phase in Bengaluru and entered the growth phase, expecting a 12% market share by the end of the decade. The company is also initiating a pilot in the NCR, further expanding its reach.
Commercial and Industrial Portfolio
Lodha Developers is also expanding its commercial and industrial portfolio to drive strong rentals. The company's project, Palava, is set to scale up its sales by 20% YoY, supported by the Airoli-Katai tunnel nearing completion by the end of FY26 and other ongoing infrastructural developments.
Investment Outlook
With a steady pace of project acquisitions and disciplined execution, Lodha Developers has enhanced long-term visibility. The company's momentum is expected to be effectively translated into sustained performance, making it an attractive investment opportunity. The target price for the stock is INR1,888, implying a 77% potential upside.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider your own risk tolerance before making any investment decisions.
- Key Takeaways:
- Lodha Developers' presales expected to clock a 22% CAGR
- Debt at comfortable levels of 0.25x by the end of 1HFY26
- Regional growth and expansion in Pune, Bengaluru, and NCR
- Expanding commercial and industrial portfolio to drive strong rentals
- Target price of INR1,888, implying a 77% potential upside