Sri Lotus: Motilal Oswal initiates coverage on this Kacholia backed-stock; check targets
Motilal Oswal has initiated coverage on recently listed Sri Lotus Developers, which is backed by ace investor Ashish Kacholia and celebrities like Hrithik Roshan, SRK, Big B and others.
- Sep 24, 2025,
- Updated Sep 24, 2025 1:19 PM IST
Domesitc brokerage firm Motilal Oswal Financial Services has initiated coverage on recently listed Sri Lotus Developers and Realty (LOTUS), which is backed by season investor Ashish Kacholia and bollywood celebrities like Hrithik Roshan, Shahrukh Khan, Amitabh Bachchan, Ajay Devgn and others.
LOTUS hasemerged as a key player in Mumbai’s society redevelopment segment. Its pre-sales have grown at a compound annual growth rate (CAGR) of 39% over FY22-25, with projections for a significant 129% CAGR in pre-sales between FY25-28, owing to a robust project pipeline, said the brokerage.
Motilal Oswal Financial Services notes that LOTUS’s current portfolio comprises four completed and five ongoing residential projects, collectively valued at INR19-20 billion, and eight upcoming residential projects with a gross development value (GDV) of INR70-75 billion. The company is also developing three commercial assets with an estimated sales potential of 0.2 million square feet, translating to a value of INR30-35 billion.
Motilal Oswal Financial Services highlights that LOTUS operates exclusively in Mumbai’s premium micro-markets, with projects in elite areas like Juhu, Andheri, Bandra, Prabhadevi, Worli, Ghatkopar, Versova, and Nepean Sea Road. Nearly 30,000 buildings are expected to undergo redevelopment in Mumbai over the next three to five years, yet only a limited number of developers possess the required expertise for these complex undertakings.
LOTUS’s focus on product quality and customer experience is emphasised by Motilal Oswal, who point to strong homeowner testimonials and referrals driving new business. The company is described as product-focused, with detailed attention to amenities, design, and architecture, treating both existing and new homeowners equally to foster trust and satisfaction.
Shares of Sri Lotus Developers & Realty were listed at the bourses on August 6, 2025 when the company raised a total of Rs 792 crore via IPO by selling its shares for Rs 150 apiece. The stock debuted at 20 per cent and it hit Rs 200.60 on Wednesday, rising over 8 per cent on an intra-day basis and 34 per cent above IPO price.
Motilal Oswal underlines that LOTUS manages the entire project lifecycle in-house, overseeing design and construction for tighter execution control and cost management. Notably, the company has consistently delivered projects ahead of schedule, including during the COVID-19 pandemic, with the last four projects completed at least 18 months before scheduled delivery.
An asset-light strategy is central to LOTUS’s rapid scaling, according to the brokerage firm. By deploying joint developments, joint ventures, and society redevelopment models, LOTUS avoids large upfront land purchases. Currently, 89% of its 2.6 million square feet under execution follows the redevelopment approach, leveraging favourable changes in floor space index regulations and development rights.
Motilal Oswal points out that robust collections and high margins underpin LOTUS’s financial performance. The company expects collections to grow at a 129% CAGR, reaching INR40.2 billion by FY28, and cumulative project collections are projected at INR149 billion by FY30. Contributing to this are premium pricing, in-house execution, and a lean sales team, supporting operating cash flows projected at INR69 billion by FY32, with operating margins exceeding 40%.
Financial discipline stands out, as the domestic brokerage reports that the company operates with zero debt and a litigation-free status, aiding project acquisition and execution. Quoting directly, “LOTUS’s management firmly believes that a debt-free developer leads to a stressfree customer.” LOTUS is expected to post a 58% revenue CAGR over FY25-28, reaching INR21.6 billion by FY28, with an EBITDA margin of 47% and PAT of INR7.7 billion by FY28. ROE and ROCE are expected to remain above 26%.
It positions LOTUS as a best-in-class operator, with a 39% CAGR in pre-sales over the last three years expected to accelerate to 129% over FY25-28. The company’s net cash position and high margins—net profit margins exceeding 35%—mark it as a standout proxy for growth in the Mumbai Metropolitan Region’s redevelopment market.
For valuation, Motilal Oswal Financial Services employs a discounted cash flow approach, using a 13% weighted average cost of capital and 2% terminal growth. The resulting net asset value is Rs 12,100 crore, leading it to initiate coverage on LOTUS with a 'BUY' rating and a target price of Rs 250 as the expansion pipeline looks set to drive further value.
Domesitc brokerage firm Motilal Oswal Financial Services has initiated coverage on recently listed Sri Lotus Developers and Realty (LOTUS), which is backed by season investor Ashish Kacholia and bollywood celebrities like Hrithik Roshan, Shahrukh Khan, Amitabh Bachchan, Ajay Devgn and others.
LOTUS hasemerged as a key player in Mumbai’s society redevelopment segment. Its pre-sales have grown at a compound annual growth rate (CAGR) of 39% over FY22-25, with projections for a significant 129% CAGR in pre-sales between FY25-28, owing to a robust project pipeline, said the brokerage.
Motilal Oswal Financial Services notes that LOTUS’s current portfolio comprises four completed and five ongoing residential projects, collectively valued at INR19-20 billion, and eight upcoming residential projects with a gross development value (GDV) of INR70-75 billion. The company is also developing three commercial assets with an estimated sales potential of 0.2 million square feet, translating to a value of INR30-35 billion.
Motilal Oswal Financial Services highlights that LOTUS operates exclusively in Mumbai’s premium micro-markets, with projects in elite areas like Juhu, Andheri, Bandra, Prabhadevi, Worli, Ghatkopar, Versova, and Nepean Sea Road. Nearly 30,000 buildings are expected to undergo redevelopment in Mumbai over the next three to five years, yet only a limited number of developers possess the required expertise for these complex undertakings.
LOTUS’s focus on product quality and customer experience is emphasised by Motilal Oswal, who point to strong homeowner testimonials and referrals driving new business. The company is described as product-focused, with detailed attention to amenities, design, and architecture, treating both existing and new homeowners equally to foster trust and satisfaction.
Shares of Sri Lotus Developers & Realty were listed at the bourses on August 6, 2025 when the company raised a total of Rs 792 crore via IPO by selling its shares for Rs 150 apiece. The stock debuted at 20 per cent and it hit Rs 200.60 on Wednesday, rising over 8 per cent on an intra-day basis and 34 per cent above IPO price.
Motilal Oswal underlines that LOTUS manages the entire project lifecycle in-house, overseeing design and construction for tighter execution control and cost management. Notably, the company has consistently delivered projects ahead of schedule, including during the COVID-19 pandemic, with the last four projects completed at least 18 months before scheduled delivery.
An asset-light strategy is central to LOTUS’s rapid scaling, according to the brokerage firm. By deploying joint developments, joint ventures, and society redevelopment models, LOTUS avoids large upfront land purchases. Currently, 89% of its 2.6 million square feet under execution follows the redevelopment approach, leveraging favourable changes in floor space index regulations and development rights.
Motilal Oswal points out that robust collections and high margins underpin LOTUS’s financial performance. The company expects collections to grow at a 129% CAGR, reaching INR40.2 billion by FY28, and cumulative project collections are projected at INR149 billion by FY30. Contributing to this are premium pricing, in-house execution, and a lean sales team, supporting operating cash flows projected at INR69 billion by FY32, with operating margins exceeding 40%.
Financial discipline stands out, as the domestic brokerage reports that the company operates with zero debt and a litigation-free status, aiding project acquisition and execution. Quoting directly, “LOTUS’s management firmly believes that a debt-free developer leads to a stressfree customer.” LOTUS is expected to post a 58% revenue CAGR over FY25-28, reaching INR21.6 billion by FY28, with an EBITDA margin of 47% and PAT of INR7.7 billion by FY28. ROE and ROCE are expected to remain above 26%.
It positions LOTUS as a best-in-class operator, with a 39% CAGR in pre-sales over the last three years expected to accelerate to 129% over FY25-28. The company’s net cash position and high margins—net profit margins exceeding 35%—mark it as a standout proxy for growth in the Mumbai Metropolitan Region’s redevelopment market.
For valuation, Motilal Oswal Financial Services employs a discounted cash flow approach, using a 13% weighted average cost of capital and 2% terminal growth. The resulting net asset value is Rs 12,100 crore, leading it to initiate coverage on LOTUS with a 'BUY' rating and a target price of Rs 250 as the expansion pipeline looks set to drive further value.