Buy Lodha Developers; target of Rs 1388: ICICI Securities

What happened

ICICI Securities kept a BUY rating on Lodha Developers with an unchanged target price of Rs 1,388. Lodha reported Q2FY27 sales bookings of INR 50.4bn, up 10% year on year, and launched five new projects in the quarter.

Confirmed

Global impact / market context

The BUY rating and Rs 1,388 target imply the broker expects the share price to rise. Sales bookings of INR 50.4bn, up 10% year on year, show customers are still buying homes, which supports cash coming in and future revenue for the developer.

Analyst inference

Lodha plans INR 240bn of FY27 sales bookings, 17% growth, and holds a launch pipeline worth INR 191bn of gross development value, which means expected sale value. It also plans to monetise about 660 acres of shovel-ready data centre land at Palava.

Analyst inference

What to watch

1. Lodha targets FY27 sales bookings of INR 240bn, 17% year-on-year growth, and has a remaining launch pipeline with a gross development value of INR 191bn, which means the expected sale value of those projects. Confirmed
2. The company plans to build a 1GW powered shell at its ~660-acre Palava data centre land, largely self-funded from land sales in DC Park, so watch whether those land sales happen as planned. Proposed
3. ICICI Securities flags key risks of slower Mumbai housing demand and approval delays. Watch Lodha's quarterly bookings against its INR 240bn target and any delay in project approvals, since either could pressure revenue. Analyst inference

Evidence

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