Purbalee Dutta 
Brokerage Motilal Oswal initiated coverage on Sri Lotus Developers and Realty Ltd. on September 24, issuing a ‘Buy’ rating with a price target of ₹250 per share. This target suggests a potential upside of 35% from the stock’s closing price on Tuesday.
The brokerage highlighted Sri Lotus Developers as a prominent player in the society redevelopment sector. The company’s pre-sales grew at a CAGR of 39% between FY22 and FY25 and are projected to accelerate to a 129% CAGR from FY25 to FY28, driven by a robust project pipeline.
Currently, Sri Lotus has four completed and five ongoing residential projects valued at ₹1,900-2,000 crore, along with eight upcoming residential projects with a GDV of ₹7,000-7,500 crore. Additionally, it has three commercial projects under development, expected to generate sales of ₹3,000-3,500 crore.
With 2.6 million sq. ft. of projects underway—89% redevelopment-based—collections are anticipated to grow at 129% CAGR, reaching ₹4,020 crore by FY28, and operating cash flows may hit ₹6,900 crore by FY32. The company’s zero-debt status, strong margins, and high returns on equity reinforce its growth potential.
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