Motilal Oswal's research report on Sri Lotus Developers and Realty
Sri Lotus Developers and Realty (LOTUS), a public limited company incorporated in February 2015 under the name AKP Holdings Private Limited, has established itself as a key player in the society redevelopment space. The company's pre-sales have clocked a CAGR of 39% over FY22-25. Currently, LOTUS has four completed and five ongoing residential projects with a combined potential value of INR19-20b, alongside eight upcoming residential projects with a GDV of INR70-75b. Additionally, it is developing three commercial assets with an estimated sales potential of 0.2msf, translating to a value of INR30-35b. Looking ahead, we estimate LOTUS’s presales to post a notable 129% CAGR over FY25-28, guided by its strong project pipeline.
Outlook
We value the ongoing and upcoming projects based on a DCF approach, applying a WACC of 13% and terminal growth of 2%, to arrive at an NAV of INR121b or INR250/sh. Accordingly, we initiate coverage on the stock with a BUY rating.
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