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Check Before You Invest : Lodha Developers Ltd

BSE: 543287 NSE: LODHA ISIN: INE670K01029
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Lodha Developers Ltd belong to?
Lodha Developers Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Lodha Developers Ltd a good quality company?
Lodha Developers Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Lodha Developers Ltd undervalued or overvalued?
Lodha Developers Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Lodha Developers Ltd a good buy now?
Lodha Developers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Lodha Developers Ltd?
Lodha Developers Ltd revenue growth is 34% for FY-2025 , which is above its 5 year CAGR of 9.3% , indicating faster growth.
Q.2 Gross Profit margin of Lodha Developers Ltd?
Lodha Developers Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.2% for FY-2025 , which is above its 5 year median of 19.8% , indicating increasing margins.
Q.3 Operating Profit Margin of Lodha Developers Ltd?
Lodha Developers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.59% for FY-2025 , which is above its 5 year median of 20.31% indicating increasing margins.
Q.4 Net Profit Margin of Lodha Developers Ltd?
Lodha Developers Ltd Net Profit Margin is 17.27% for FY-2025 , is above with its 5 year median of 12.3%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 25.2 19.8
Operating Profit Margin 26.59 20.31
Net Profit Margin 17.27 12.3
Q.5 Return on Asset of Lodha Developers Ltd?
Lodha Developers Ltd Return on Asset is 4.54(x), which is above its 5 year historical median of 2.65(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Lodha Developers Ltd?
Lodha Developers Ltd Return on equity is 12.53% for FY-2025 , which is above its historical median of 8.18%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Lodha Developers Ltd?
Lodha Developers Ltd Return on capital employed is 13.67% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Lodha Developers Ltd?
Lodha Developers Ltd Cash conversion cycle is 857 , below its historical median of 1070 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.26 0.23
ROE 12.53 8.18
ROCE 13.67 8.96
Cash Conversion Cycle 857 1070
Q.9 Debt to Equity ratio of Lodha Developers Ltd?
Lodha Developers Ltd Debt-to-Equity ratio is 0.41 , which is lower with the industry average of 0.51 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Lodha Developers Ltd?
Lodha Developers Ltd Debt to cash flow from operations is 6.38 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lodha Developers Ltd?
Promoters hold 71.85% of the Lodha Developers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lodha Developers Ltd vs industry peers?
Lodha Developers Ltd revenue CAGR is 9.33% , compared to the industry median CAGR of 9.33% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 12,677.3 3,240.1
Gross Profit 3,194.6 1,295.3
Operating Profit 3,371 1,204
Net Profit 2,190 1,134
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.26 0.19
ROE 12.53 8.18
ROCE 13.67 8.96
Cash Conversion Cycle 856.85 664

Valuation & price assessment

Q.1 Stock return of Lodha Developers Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - 21.5% -26.9%
Q.3 Valuation ratios of Lodha Developers Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 28.52 221.46 40.36
Price to Book 3.95 5.41 1.49
Price to Sales 5.71 7.74 4.61
EV to EBITDA 19.49 36.33 14.16

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