Sri Lotus Developers and Realty (LOTUS) witnessed a notable surge in share price on Wednesday, September 24, 2025, after domestic brokerage Motilal Oswal initiated coverage with a ‘Buy’ rating. The scrip climbed as much as 6.17% to touch an intraday high of ₹197 per share, reflecting strong market interest. At 10:10 AM, LOTUS shares were trading 4.45% higher at ₹193.80, compared to a 0.28% decline in the BSE Sensex at 81,871.19.
The brokerage set a target price of ₹250 per share, implying an upside potential of 35%. Analysts Abhishek Lodhiya and Yohan Batliwal explained that the valuation is based on a discounted cash flow (DCF) methodology, with a weighted average cost of capital (WACC) of 13% and a terminal growth rate of 2%. This approach yields a net asset value (NAV) of ₹12,100 crore, equating to ₹250 per share, forming the basis for the Buy rating.
LOTUS, incorporated in 2015, has positioned itself as a key player in Mumbai’s society redevelopment segment. The company has completed four residential projects and is executing five ongoing projects with a gross development value (GDV) of ₹1,900–2,000 crore. Additionally, eight upcoming projects valued between ₹7,000–7,500 crore place LOTUS in a strong position to leverage Mumbai’s redevelopment opportunities. Presales have recorded a 39% compound annual growth rate (CAGR) over FY22–25, with projections for a 129% CAGR over FY25–28.
Specialist in Luxury Redevelopment
Analysts highlighted that the city is expected to see the transformation of nearly 30,000 buildings over the next three to five years, yet few developers have the expertise to handle complex redevelopment projects. LOTUS has delivered eight society redevelopment projects covering 1.35 million square feet and focuses on premium micro-markets such as Juhu, Bandra, Worli, Prabhadevi, and Nepean Sea Road. The company’s specialization in luxury redevelopment caters to an elite clientele, emphasizing quality, design, and upscale amenities.
Motilal Oswal analysts noted that LOTUS prioritizes product quality and customer satisfaction. The company manages projects end-to-end, from design through construction, which ensures faster delivery and tighter cost control. Impressively, the latest four projects were delivered at least 18 months ahead of schedule, even during the COVID-19 period. This customer-first approach has generated strong referrals and repeat business.
Asset-Light Model
LOTUS leverages Mumbai’s limited land availability through redevelopment and joint ventures (JD/JV), executing 2.6 million square feet, of which 89% falls under redevelopment. The asset-light strategy, supported by transferable development rights (TDR) and flexible floor space index (FSI), allows rapid scaling with minimal capital deployment.
With eight upcoming launches by FY27, LOTUS projects collections of ₹4,020 crore by FY28. Premium pricing, lean sales structure, and in-house execution underpin high operating margins of around 40%. Cumulative operating cash flows are expected to reach ₹6,900 crore by FY32. The company maintains a net debt-free, litigation-free position, reflecting financial discipline. Revenue is projected to grow at a 58% CAGR over FY25–28 to ₹2,160 crore, Ebitda at 52% CAGR to ₹1,020 crore, and PAT at 50% CAGR to ₹770 crore. Return on equity (ROE) and return on capital employed (ROCE) are both expected to exceed 26%, indicating strong profitability.
Analysts see LOTUS as well-positioned to benefit from Mumbai’s redevelopment wave, especially in the luxury segment. The combination of a customer-centric approach, premium project portfolio, and asset-light execution model provides resilience and scalability in a competitive real estate market. The Motilal Oswal Buy rating signals confidence in the company’s strategic execution and growth trajectory over the medium term.
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