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Motilal Oswal sees 52% bull-case upside in newly listed realty stockBacked by best-in-class execution, Lotus Developers is expected to deliver operating margins above 40% and net profit margins exceeding 35%.By Meghna Sen   September 24, 2025, 6:58:27 AM IST (Published)2 Min ReadBrokerage firm Motilal Oswal has initiated coverage on Sri Lotus Developers and Realty Ltd. on Wednesday, September 24, with a 'Buy' recommendation and a price target of ₹250 per share.

Motilal Oswal's price target implies a potential upside of 35% from Tuesday's closing levels.

The brokerage wrote in its note that Sri Lotus Developers and Realty has established itself as a key player in the society redevelopment space.

The company's pre-sales grew at a CAGR of 39% over financial year 2022-2025 and are expected to accelerate at a 129% CAGR over over financial year 2025-2028, supported by a strong project pipeline.

Currently, Lotus Developers has four completed and five ongoing residential projects with a combined potential value of ₹1,900-2,000 crore.

It also has eight upcoming residential projects with a GDV of ₹7,000-7,500 crore and three commercial assets under development, with an estimated sales potential of 0.2 msf, translating to ₹3,000-3,500 crore.

The company is executing 2.6 msf of projects, with nearly 89% under the redevelopment model. Collections are expected to grow at a 129% CAGR, reaching ₹4,020 crore by FY28E, while cumulative operating cash flows (OCF) could touch ₹6,900 crore by FY32.

Backed by best-in-class execution, Lotus Developers is expected to deliver operating margins above 40% and net profit margins exceeding 35%.

Motilal Oswal further said that the company's zero-debt, litigation-free status enhances its ability to acquire projects, supported by RoE/RoCE above 26% and a strong net cash position.

In its bull-case scenario, the brokerage has a price target of ₹282, implying a 52% upside. This assumes a faster bookings CAGR of 144% over FY25-28 (as against 129% in the base case), driving collections growth of 143% CAGR and cumulative OCF of ₹160 crore (as against ₹130 crore in the base case).

Shares of Sri Lotus Developers and Realty ended 0.69% lower on Tuesday at ₹187.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market today