Buy Lodha Developers; target of Rs 1888: Motilal Oswal

BUY

Motilal Oswal's research report on Lodha Developers

In 2QFY26, Lodha Developers (LODHA)’s presales rose 7%/3% YoY/QoQ to INR45.7b (in line). In 1HFY26, its presales grew 8% YoY to INR90.2b. With the Supreme Court of India approving the Environmental Clearance (EC) process in late August for certain projects, the company is set for significant project launches in the second half of the year. LODHA’s collections grew 13%/21% YoY/QoQ to INR34.8b (13% below our estimates) and are expected to strengthen in 2HFY26. In 1HFY26, collections rose 10% YoY to INR63.6b.

Outlook

We use a DCF-based method for the ex-Palava residential segment and arrive at a value of ~INR549b, assuming a WACC of 11.1%. Reiterate BUY with a TP of INR1,888.

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