The brokerage also underscored the developer’s zero-debt model and strong presence in premium Mumbai markets.
Sri Lotus Developers shares rose 7.5% on Wednesday after Motilal Oswal started coverage on the company with a ‘Buy’ rating and a price target of ₹250, pointing to the company’s deep play in Mumbai’s luxury redevelopment market and a sharp ramp-up in growth over the next few years.
Growth Outlook
Motilal Oswal expects Sri Lotus’s pre-sales to rise at a compound annual growth rate (CAGR) of 129% between FY25 and FY28, much faster than the 39% growth pace recorded over FY22–25.
Collections are projected to reach about ₹40.2 billion by FY28, with cumulative inflows from current projects expected to touch ₹149 billion by FY30.
Project Pipeline
The developer has already completed four residential projects and is currently working on five more, collectively worth around ₹19–20 billion. Eight new residential projects are also in the pipeline with a gross development value (GDV) of ₹70–75 billion, along with three commercial projects that could generate sales of ₹30–35 billion.
Most of these projects are being pursued under joint ventures or society redevelopment, allowing the company to scale quickly without large upfront land costs.
Focus On Premium Redevelopment
Sri Lotus has made a name for itself in the high-end redevelopment market, delivering eight projects so far across some of Mumbai’s most sought-after neighborhoods, such as Juhu, Bandra, Worli, and Nepean Sea Road.
By specializing in luxury housing within premium micro-markets, the company has built credibility with both homeowners and investors in what is otherwise a highly complex space.
Financials And Valuation
The company runs with zero debt, a factor Motilal Oswal said sets it apart in the industry. Margins are expected to stay healthy, with operating margins above 40% and net profit margins north of 35% by FY28.
Returns on equity and capital employed are both forecast to remain above 26%. Using a discounted cash flow (DCF) model, Motilal Oswal valued Sri Lotus at a net asset value (NAV) of ₹121 billion, working out to ₹250 per share.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bearish’ amid ‘extremely low’ message volume.
The real estate company was listed in August 2025. Sri Lotus Developers’ stock has risen 1.9% so far in 2025.
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