Motilal Oswal initiated coverage on Sri Lotus Developers and Realty Ltd. on Wednesday, September 24, assigning a ‘Buy’ rating with a price target of ₹250 per share. This suggests a potential upside of 35% from Tuesday’s closing price of ₹187.
In its research note, the brokerage highlighted Sri Lotus Developers as a leading player in the society redevelopment segment. The company’s pre-sales have grown at a CAGR of 39% between FY22 and FY25 and are projected to accelerate further at a 129% CAGR from FY25 to FY28, driven by a robust project pipeline.
Currently, the developer has four completed and five ongoing residential projects worth ₹1,900–2,000 crore. It also has eight upcoming residential projects with a gross development value (GDV) of ₹7,000–7,500 crore and three commercial assets under development, expected to generate ₹3,000–3,500 crore from 0.2 million sq. ft. of saleable area.
Lotus is executing 2.6 million sq. ft. of projects, 89% of which follow the redevelopment model. Collections are projected to grow at 129% CAGR to ₹4,020 crore by FY28, with cumulative operating cash flow reaching ₹6,900 crore by FY32. The company’s zero-debt status, strong margins, and RoE/RoCE above 26% enhance its growth prospects. In a bull-case, the stock could rise to ₹282.
