Buy Lodha Developers; target of Rs 1375: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Strong Presales Growth: Lodha Developers has shown a 10% YoY growth in presales, reaching INR50.4b in 2QFY27, driven by a diversified launch pipeline across MMR, Bengaluru, Pune, and NCR.
  • Regional Diversification: The company has successfully expanded its presence in new regions, with Bengaluru contributing 37% to presales in 2QFY27, reducing dependence on MMR.
  • Robust Launch Pipeline: A strong pipeline of INR191b is planned for launch in 2HFY27, providing visibility for sustained sales growth.
  • Data Center Business: The company's data center business is progressing well, with approved power availability increasing to 5GW and a target of signing up 1GW of input power capacity by FY30.

Thesis Validation Checklist

To validate the investment thesis, watch for: sustained presales growth, successful launches in new regions, progress in the data center business, and maintenance of a healthy balance sheet. Key metrics to track include presales, collections, operating cash flows, and net debt levels.