Brokerage Recommendations by JM Financial: Key Takeaways
Lodha Developers, a leading real estate company, has been given a 'Buy' rating by JM Financial with an upside potential of nearly 41%. The brokerage firm has set a target price of Rs 1,240.
Lodha Developers: Strong Sales Growth but Cash Flow Concerns
- Lodha reported pre-sales of Rs 5,900 crore, a 23% rise compared to last year and a 5% increase from the previous quarter.
- For FY26, pre-sales stood at Rs 20,500 crore, up 16% from the previous year.
- Cash flow performance is tepid with a 4% YoY growth in collections.
Lodha has been actively investing in new projects, with a total investment of Rs 6,800 crore in business development and approvals, and adding Rs 60,000 crore worth of new projects.
GMR Airports: Traffic Concerns vs Long-term Opportunity
JM Financial has set a target price of Rs 115 for GMR Airports, implying an upside of around 20%.
- The key concern around GMR Airports has been the impact of the new Noida airport on traffic at Delhi airport.
- JM Financial believes these fears may be overdone, with a domestic traffic shift potential of 10–15% and an insignificant shift (<4%) in international traffic.
- Connectivity challenges could limit the immediate impact of the new airport.
City Union Bank: Stable Growth with Improving Metrics
JM Financial has set a target price of Rs 320 for City Union Bank, indicating an upside of about 18%.
- The bank has delivered strong growth in both loans and deposits, with advances/deposits growing 26%/23% YoY (+8%/+11% QoQ).
- Asset quality has also shown improvement, with GNPA/NNPA moderating.
- The brokerage expects steady growth ahead, forecasting a loan CAGR of ~18% during FY26-28 estimates.
What Investors Need to Know
Lodha Developers is seeing strong demand but needs to improve cash flows. GMR Airports faces near-term traffic concerns but has long-term growth visibility. City Union Bank is delivering steady performance with improving asset quality.
Disclaimer: The investment recommendations and target prices mentioned in this report are based on analysis by JM Financial and are for informational purposes only. Trading in equities involves significant market risk, and the projected upside potentials are not guaranteed. Readers are advised to consult with a SEBI-registered financial advisor before making any investment decisions, as individual financial goals and risk appetites vary. This content does not constitute an offer or solicitation to buy or sell any securities.