M
otilal Oswal’s new coverage of Sri Lotus Developers pushed the stock up 7.5 % on Wednesday, issuing a Buy rating and a ₹250 target. The brokerage highlighted the developer’s debt‑free balance sheet and its strong foothold in Mumbai’s premium redevelopment market, forecasting a rapid growth surge in the coming years.

    Growth outlook: Motilal projects pre‑sales to rise at a 129 % CAGR from FY25 to FY28, far outpacing the 39 % pace seen in FY22‑25. Collections are expected to reach ₹40.2 B by FY28, with total cash inflows from existing projects hitting ₹149 B by FY30.

    Project pipeline: Sri Lotus has completed four residential developments and is actively working on five more, valued at roughly ₹19–20 B. Eight additional residential projects are slated, with a gross development value of ₹70–75 B, while three commercial ventures could bring in ₹30–35 B in sales. Most of these are pursued through joint ventures or society redevelopments, enabling rapid scaling without large land outlays.

    Premium redevelopment focus: The developer has delivered eight luxury projects in prime Mumbai locales such as Juhu, Bandra, Worli, and Nepean Sea Road, cementing its reputation among homeowners and investors in a complex market.

    Financial health and valuation: With no debt, Sri Lotus is expected to maintain operating margins above 40 % and net margins north of 35 % by FY28. ROE and ROCE are forecast to stay above 26 %. A DCF analysis values the company at a NAV of ₹121 B, translating to ₹250 per share.

    Market sentiment: On Stocktwits, retail sentiment remains bearish with very low activity. The company went public in August 2025 and has risen 1.9 % in 2025 so far. For updates, contact [email protected].