Target: ₹250
CMP:₹194.95
Sri Lotus Developers and Realty (Lotus), a public limited company incorporated inFebruary 2015 under the name AKP Holdings Private Ltd, has established itself as a key player in the society redevelopment space. The company’s pre-sales have clocked a CAGR of 39 per cent over FY22-25.
Currently, LOTUS has four completed and five ongoing residential projects with a combined potential value of ₹1,900-2,000 crore, alongside eight upcoming residential projects with a GDV of ₹7,000-7,500 crore. Additionally, it is developing three commercial assets with an estimated sales potential of 0.2 msf, translating to a value of ₹3,000-3,500 crore. Looking ahead, we estimate LOTUS’s presales to post a notable 129 per cent CAGR over FY25-28, guided by its strong project pipeline.
With RoE/RoCE above 26 per cent and a net cash status, Lotus stands out as the best proxy for MMR’s redevelopment growth story
We value the ongoing and upcoming projects based on a DCF approach, applying a WACC of 13 per cent and terminal growth of 2 per cent, to arrive at an NAV of ₹12,100 crore or ₹250/share. Accordingly, we initiate coverage on the stock with a Buy rating.