Sri Lotus Developers rallies 8% in two days; what's driving realty stock?

According to NSE bulk deal data, US-based Capital Group acquired nearly 2% equity stake in the Mumbai-based Sri Lotus Developers and Realty.

Sri Lotus Developers and Realty share price movement

 

Sri Lotus Developers and Realty's share price hit a 52-week high of ₹215, surging 3 per cent on the National Stock Exchange (NSE) in Friday’s intra-day deals in an otherwise weak market. In the past two trading days, the stock price of Sri Lotus Developers surged 8 per cent after US-based Capital Group acquired nearly 2 percent equity stake in the Mumbai-based real estate company.

 

Meanwhile, in the past month, the stock outperformed the market, soaring 28 per cent. In comparison, the Nifty 50 and Nifty Realty indices were down 5 per cent each.

 

 

At 12:19 PM on Friday, Sri Lotus Developers quoted 1 per cent higher at ₹209.40, compared to a 0.58 per cent decline in the Nifty 50 and a 3.4 per cent fall in the Nifty Realty index. The stock trades close to its record high of ₹218.50 hit on August 11, 2025.

 

Promoter offloads 2% stake in Sri Lotus Developers

 

Sri Lotus Developers informed stock exchanges that Anand Kamalnayan Pandit, one of the promoters, sold 9.77 million equity shares (representing 2.00 per cent of the total issued and paid-up equity share capital) on September 10, 2026, through open market sale. The company said the promoter offloaded shares to comply with the minimum public shareholding requirements applicable to the company.

 

Pursuant to the above mentioned sale of equity shares, the shareholding of the promoters and members of the promoter group in the company reduced from 81.87 per cent of the paid-up equity share capital of the company to 79.87 per cent of the issued and paid-up equity share capital of the company, Sri Lotus Developers said. 

 

Meanwhile, according to NSE bulk deal data, US-based Capital Group acquired nearly 2 percent equity stake in Mumbai-based Sri Lotus Developers and Realty.

 

Smallcap World Fund Inc, part of California-based Capital Group, bought 9.51 million equity shares, representing a 1.94 percent stake in the company, for ₹190.01 crore at ₹199.89 per share, the NSE bulk deal data shows.

 

Motilal Oswal Financial Services view on Sri Lotus Developers

 

According to Motilal Oswal, Sri Lotus Developers has a healthy pipeline of projects, with four launches planned over the remainder of FY27—Lotus Aurelia (Bandra), Lotus Sky Plaza (Prabhadevi), Lotus Portfino (Versova), and Lotus Odyssey (Andheri West)—aggregating ₹3,500- ₹4,000 crore of gross development value (GDV). 

 

As of June 2026 quarter (Q1FY27), the company had a residential portfolio comprising ongoing projects with a GDV of ₹4,500-₹4,700 crore and an upcoming pipeline with a GDV of ₹7,500-₹7,800 crore. The company also has an upcoming commercial portfolio with a GDV of ₹4,700-₹5,200 crore. Additionally, it recently secured a commercial redevelopment project in Juhu with a GDV of ₹1,600 crore. Collectively, these projects offer a pre-sales potential of ₹18,000-₹19,000 crore, providing a comfortable growth visibility over the medium term. 

 

Analysts at Motilal Oswal Financial Services bake in a 56 per cent compound annual growth rate (CAGR) in pre-sales over FY26-28E, reaching ₹2,800 crore.

 

Sri Lotus Developers delivered a 59 per cent pre-sales CAGR over FY22-26. With a healthy project pipeline, pre-sales and collections are expected to remain at a higher level over the medium term. Further, the company continued its business development efforts, and the brokerage firm expects more projects to be added in the coming quarters, providing further growth visibility.

 

“Hence, we assign a 50 per cent net asset value (NAV) premium to reflect the company’s future growth potential and reiterate our BUY rating with a target price of ₹230,” the brokerage firm said post Q1 results. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.