Lodha share price hits 52-week highs; should you buy the stock post-Q1 results?
₹3,350 crore and strong business development of nearly ₹12,000 crore. The stock rose 2.75 per cent in the following session on July 28. However, the company's consolidated net profit for Q1FY24 fell to ₹179.2 crore from ₹271.3 crore year-on-year (YoY).
Total income for the quarter stood at ₹1,671.8 crore, lower than the ₹2,675.8 crore in the same quarter last year. While Lodha's Q1 numbers were weak, brokerage firms largely remained positive about the stock, citing the company is on track to achieve its FY24 guidance. Motilal Oswal Financial Services retained a 'buy' call on the stock with an unchanged target price of ₹850, implying a 14 per cent upside potential.
"Lodha beat our pre-sales in Q1FY24 and remains on track to achieve its FY24 guidance. We keep our FY24 pre-sales estimate unchanged at ₹15,000 crore as we expect the company to exceed its pre-sales guidance of ₹14,500 crore," Motilal Oswal said. "Lodha continues to deliver better-than-expected business development, which will entail further visibility on growth without losing focus on deleveraging.
Our terminal growth rate of 4 per cent in our DCF-based methodology is the least it can achieve in the long term, leaving further headroom for re-rating," said the brokerage firm. Motilal Oswal increased the company's revenue, EBITDA and PAT estimates by 13 per cent, 23 per cent and 31 per cent, respectively, for FY24 and 20 per cent, 26 per cent and 30 per cent, respectively, for FY25. Nuvama Wealth Management maintained its buy call on the stock and raised the target price to ₹871 from ₹828 earlier.
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