Shares of Lodha Developers Ltd. rose over 3% on Friday, July 3, after brokerage firm CLSA identified the real estate developer as one of the technically attractive opportunities in the sector, citing a breakout from a prolonged consolidation pattern.

The stock was trading 3.2% higher at ₹1,038.10 as of 1 PM, extending its weekly gains to over 11% and monthly gains to more than 18%. Despite the recent rally, the stock remains about 28% below its 52-week high.

In a note on Friday, July 3, CLSA's Laurence Balanco said Lodha has recently completed a significant basing-and-consolidation pattern breakout, making it one of its preferred technical picks.

Separately, Jefferies expects Lodha's pre-sales for the June quarter to come in between ₹4,800 crore and ₹5,000 crore, implying a 5%-10% year-on-year increase. However, the brokerage noted that the quarter is likely to fall short of the company's FY27 pre-sales guidance of ₹24,000 crore.

Lodha Promoter Stake Sale

The brokerage note comes days after promoter entities Hightown Constructions Pvt. Ltd. and Homecraft Developers & Farms Pvt. Ltd. sold a combined 1.99% stake in Lodha Developers through block deals, raising ₹1,864.6 crore at ₹937.85 per share to Fidelity-managed funds.

Since its stock market debut in April 2021, Lodha has delivered a 28% compound annual growth rate (CAGR) in pre-sales, while reducing its net debt-to-equity ratio sharply from 5 times to 0.23 times, according to Jefferies

The company is also targeting a significant increase in rental income, aiming to grow it from around ₹300 crore in FY26 to ₹3,000 crore by FY32, led by its data center business.

CLSA noted that Lodha had missed its FY26 sales guidance due to the impact of the West Asia conflict.

Lodha Valuation below historical average

The brokerage highlighted that Lodha currently trades at 3.3 times one-year forward price-to-book, below its five-year average valuation multiple of 4.7 times.

It added that the stock's current valuation compares with 3.2 times for DLF, 2.5 times for Godrej Properties, 2.8 times for Oberoi Realty and 3.4 times for Prestige Estates.

The stock has recovered 60% from its 52-week low of ₹650.8 that it fell to in March this year. Despite this recovery, the stock is down 3% so far in 2026.