Lodha Developers (LODHA)

FairStock Score: 71/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham's glasses and Buffett's patience. Lodha is a large residential/commercial developer with ₹1.24 lakh Cr market cap, quoted at ₹1,243.90. The operating record is respectable: ROE 16.56%, ROCE 15.62%, debt/equity 0.42, free cash flow ₹1,476 Cr, and Piotroski F-Score 8/9. Promoter holding 71.85% aligns owners. Latest quarter sales ₹4,673 Cr and net profit ₹958 Cr, while sales growth 28.57% and profit growth 62.89% show momentum. That is a quality cyclical, not a fragile balance sheet. However, I must ask what I pay. P/E 30.21 and P/B 5.34 on book value ₹233.12 are rich for a business whose five-year revenue CAGR is only 2.06%. The Graham Number is ₹393.63, giving a margin of safety of -151.06%; DCF intrinsic value ₹150.72 is far below market. PEG 7.65 and EV/EBITDA 125.78 suggest expectations are sky-high. Dividend yield 0.34% offers little income. Altman Z-Score 2.22 sits in grey zone, and real estate is cyclical. A 52-week range ₹650.80–₹1,344.95 shows volatility. FairStock score 71/100 STEADY is comforting but not a bargain. I would call it a quality cyclical—well-run, but priced for perfection. That does not make it a bargain; it makes it a fine business at a full price. Mr. Market is euphoric; I want a margin of safety. I'd watch sales/profit durability, FCF, debt, and whether 5yr CAGR can catch up to recent growth. Until price approaches intrinsic value, I'll admire from watchlist.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer