Motilal Oswal Turns Bullish on Lodha with ₹1,888 Target, Citing Strong Demand and Debt Reduction

Motilal Oswal has turned optimistic on Lodha (formerly Macrotech Developers), raising its target price to ₹1,888—implying ~58% upside from current levels—on the back of stronger-than-expected demand, improving balance sheet, and robust launch pipeline. The brokerage sees Lodha as a key beneficiary of a multi-year upcycle in branded housing, driven by rising affordability in Mumbai and Pune, tighter supply, and a shift toward large, trusted developers. Affordability in Mumbai has improved 10–15% over four years, boosting sales momentum. Lodha’s pre-sales expected to rise to ₹18,000 crore in FY26 (from ₹14,520 crore in FY25), supported by a strong launch pipeline of ₹1.2 lakh crore, including major redevelopment projects across MMR and Pune. Its gross development value now exceeds ₹3.7 lakh crore. Critically, the company is rapidly deleveraging—net debt projected to fall from ₹7,040 crore (FY23) to ₹2,500 crore by FY26—enhancing financial flexibility and lowering cost of capital. The shift to asset-light partnerships allows scale with limited balance sheet strain, while pricing power remains intact in premium and mid-income segments, with sustainable annual price appreciation of 4–6%. With sector consolidation favoring branded players, Motilal Oswal believes Lodha’s strong execution, brand recall, and cash flow discipline position it for superior returns in the next phase of India’s real estate cycle.