Time To Accumulate? Why Lodha’s 42.50% Dividend & Healthy Q4 Results Signal A Bullish Run To Rs 1400?

With its portfolio of residential, commercial, and digital infrastructure projects, Lodha is the top real estate developer in India and one of the best in the world. As part of its ongoing and scheduled portfolio, the company has delivered around 100 million square feet of real estate and is now developing over 110 million square feet. The firm is dedicated to spearheading the real estate sector's low-carbon transformation by achieving net-zero carbon emissions by 2050. In addition to a final dividend recommendation of 42.50% for FY25, the company has announced healthy Q4 numbers. However, the interesting thing is that Macrotech Developers is displaying strong bullish momentum with higher highs and sustained buying interest. Consequently, let's examine the technical analysis to determine whether traders should use the buy at dip strategy to accumulate Lodha.

Lodha Dividend

The Board of Directors considered and approved "Recommendation of final dividend of ₹ 4.25, i.e., 42.50% per equity share of ₹ 10/- each of the Company. The Final Dividend will be paid to the shareholders holding equity shares on the record date to be determined by the Company after approval of the members at the ensuing 30th Annual General Meeting," said the company in a stock exchange filing.

Lodha Q4 Results

Macrotech Developers' fourth-quarter net profit for the quarter ending March 31, 2025, was Rs 921.7 crore, up 38.5% YoY from Rs 665.5 crore in the same period of the prior fiscal year. From Rs 4,018.5 crore in Q4FY24 to Rs 4,224.3 crore in Q4FY25, revenue from operations climbed 5.1%. The company said its earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 16.6% to Rs 1,220.7 crore from Rs 1,046.9 crore.

Mr. Abhishek Lodha, MD & CEO, Macrotech Developers Ltd. said, "Our best ever quarterly and annual performance showcases the buoyancy in demand for high quality homes in India from a top-notch brand like Lodha. Driven by the strength of our brand, we delivered pre-sales of INR 176bn for FY25, thus meeting our guidance of delivering consistent and predictable 20% growth - now for four consecutive years since our IPO. Our focus on profitable growth has resulted in strong margins and Return on Equity (RoE), which provides us with continued strength to grow. Our strong collections are also indicative of our capability to convert sales into cashflow in a timely manner."

"We are extremely pleased that this is the fifth consecutive quarter of achieving pre-sales greater than INR 40bn thus showcasing our predictable business model. The quarter also saw the strongest ever collections performance of INR 44.4bn which showcases strong execution capability of the organization. I would like to highlight that our micro market led super market strategy enabled us to deliver INR 25bn of Pre- sales in the Western Suburbs of MMR, registering 140% growth on YoY basis. Our new Business Development for FY25 across MMR, Pune and Bengaluru stands at INR ~237bn of GDV (10 projects), thus surpassing our full year guidance," he added.

"During Q4, we added two more projects in Pune with a GDV of INR 43bn. With this, we now have nine locations across Pune. Having achieved over INR 25bn of pre-sales in Pune in FY25, the larger base of projects sets us on path to further increase our market share and continue to grow towards becoming the No. 1 developer in Pune. Similarly, we have entered FY26 with five locations in Bengaluru setting the stage for our growth phase," stated Abhishek Lodha.

"Despite investments in Business Development in this quarter, we further reduced our net debt by INR 3.1bn to INR 39.9bn (0.2x Net Debt/ Equity) - well below our ceiling of 0.5x Net Debt/Equity. This is on the back of strong operating cash flow generation of INR 23.4bn during the quarter. On the back of strong operating and financial performance, India Ratings upgraded our credit rating to (AA/ Stable). Our exit cost of debt continues to go down and stands at 8.7% (down ~10 bps during the quarter) - among the lowest in the industry," Lodha further added.

Lodha Share Price Target

"Macrotech Developers is showing strong bullish momentum with higher highs and sustained buying interest. A move above ₹1350 could trigger further upside towards ₹1380-1400. The stock has solid support around ₹1280, where buying demand has been observed. As long as it holds above this level, the trend remains positive and dips can be used for accumulation," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.