Sri Lotus Developers stock price today: Up 6% on Motilal Oswal 'Buy' rating

Sri Lotus Developers share price jumped after domestic brokerage Motilal Oswal initiated coverage on the stock with a 'Buy' rating, with a target of ₹250 per share, which reflects an upside of 35%.

Sri Lotus Developers share price today: Sri Lotus Developers and Realty (LOTUS) share price was in demand on Wednesday, September 24, 2025, with the scrip zooming as much as 6.17 per cent to hit an intraday high of ₹197 per share.

 

At 10:10 AM, Sri Lotus Developers share price was trading 4.45 per cent higher at ₹193.80. In comparison, BSE Sensex was trading 0.28 per cent lower at 81,871.19 levels.

 

What drove Sri Lotus Developers share price higher today?

 

Sri Lotus Developers share price jumped after domestic brokerage Motilal Oswal initiated coverage on the stock with a ‘Buy’ rating, with a target price of ₹250 per share, which reflects an upside of 35 per cent. 

 

“We value the ongoing and upcoming projects based on a DCF approach, applying a WACC of 13 per cent and terminal growth of 2 per cent, to arrive at an NAV of ₹12,100 crore or ₹250 per share. Accordingly, we initiate coverage on the stock with a Buy rating,” said Abhishek Lodhiya and Yohan Batliwal, research analysts at Motilal Oswal in a note dated September 23.  Track Stock Market Live Updates 

Here are the key reasons why Motilal Oswal initiated coverage on the stock:

 

Mumbai redevelopment play

 

LOTUS, incorporated in 2015, has become a key player in Mumbai’s society redevelopment space. With four completed and five ongoing residential projects (GDV ₹1,900-2,000 crore), plus eight upcoming projects (GDV ₹7,000-7,500 crore), the company is well positioned to capture the city’s redevelopment wave. LOTUS’s presales have grown at a 39 per cent CAGR over FY22-25 and are projected to surge at 129 per cent CAGR over FY25-28, supported by a strong project pipeline.

 

Luxury-focused redevelopment specialist

 

Mumbai’s redevelopment market is expected to transform nearly 30,000 buildings over the next 3\-5 years, but few developers have the expertise to execute complex projects, analysts said. LOTUS has completed eight society redevelopment projects covering 1.35msf and focuses exclusively on premium micro-markets. Its portfolio includes prestigious locations like Juhu, Bandra, Worli, Prabhadevi, and Nepean Sea Road, catering to the city’s elite and reflecting a niche luxury focus.

 

Product- and customer-centric execution

 

According to analysts at Motilal Oswal, LOTUS prioritises product quality, design, and amenities, not just project delivery. Its customer-first approach generates strong referrals and repeat business. By managing projects end-to-end – from design to construction – the company ensures faster delivery and tighter cost control. Impressively, its four latest projects were delivered at least 18 months ahead of schedule, even during the Covid-19 period.

 

Asset-light growth strategy

 

Mumbai’s land scarcity favours redevelopment and joint ventures (JD/JV) over outright land purchases. LOTUS leverages this through an asset-light model, executing 2.6msf of projects, 89 per cent under redevelopment. The model, boosted by Transferable Development Rights (TDR) and fungible FSI, allows rapid scaling with minimal capital deployment, analysts highlighted.

 

Strong margins and collections

 

LOTUS’s five ongoing projects (GDV ₹1,500-1,600 crore) and eight planned launches by FY27 underpin projected collections of ₹4,020 crore by FY28E. Its premium pricing (~20 per cent above competitors), lean sales structure, and in-house execution support high operating margins (~40 per cent). Cumulative operating cash flows are expected to reach ₹6,900 crore by FY32.

 

Debt-free financial strength

 

LOTUS maintains a net debt-free, litigation-free stance, reinforcing credibility with customers and partners. Revenue is projected to grow at 58 per cent CAGR over FY25-28 (₹2,160 crore by FY28), Ebitda at 52 per cent CAGR (₹1,020 crore), and PAT at 50 per cent CAGR (₹770 crore). Return on equity (ROE) and return on capital employed (ROCE) are expected to exceed 26 per cent, reflecting strong profitability and disciplined execution, analysts said.