Stocks To Buy: Motilal Oswal bets on this real estate stock for up to 58% upside

Brokerage firm Motilal Oswal has reiterated its 'Buy' rating on Lodha Developers, the Mumbai-headquartered real estate and construction company, in a note released on Wednesday, November 19.

Motilal Oswal has a price target of ₹1,888, implying an upside potential of 58% from Tuesday's closing level.

The brokerage said Lodha has delivered steady performance across key operating metrics. As the company gears up to tap strong growth and consolidation opportunities in the sector, Motilal Oswal expects this consistent operational momentum to sustain.

Lodha's presales are esimated to grow at a 22% CAGR, supported by healthy collections and a comfortable net debt position of 0.25x by the end of H1FY26, despite aggressive business development additions worth ₹25,000 crore.

The Pune business is scaling up well and is expected to deliver 40% YoY growth in sales. Lodha has also completed its pilot phase in Bengaluru and moved into the growth stage, targeting a 12% market share by the end of the decade.

The company is also initiating a pilot in the NCR as it expands its presence. Lodha is further strengthening its commercial and industrial portfolio to drive strong rental income.

At Palava, sales are poised to rise 20% YoY, supported by the Airoli-Katai tunnel, which is expected to be completed by the end of FY26, along with other ongoing infrastructure developments.

Motilal Oswal said that Lodha's steady pace of project acquisitions enhances long-term visibility, while disciplined and timely execution ensures that this momentum translates into sustained performance.

18 analysts have coverage on Lodha Developers, 15 of which have a 'Buy' rating, one say 'Sell', while two have a 'Hold' rating.

Shares of Lodha Developers Ltd. ended 2.56% higher on Tuesday at ₹1,189. The stock has fallen 13% so far this year.