Sri Lotus Developers, a Mumbai-based real estate firm, surged over 34% after its August 2025 IPO, driven by strong pre-sales, premium pricing, and a debt-free, asset-light model.

Motilal Oswal has initiated coverage on Sri Lotus Developers & Realty with a 'Buy' rating and a ₹250 target, citing strong growth, high margins, and a debt-free, litigation-free status. The Mumbai-based firm, which went public in August 2025 at ₹150, saw its stock rise over 34% to ₹200.60, driven by demand in premium Mumbai neighborhoods and a focus on redevelopment projects. With a 39% CAGR in pre-sales and projected 129% growth through FY28, the company benefits from an asset-light model, in-house management, and strong cash flow. Financially, it expects 58% revenue growth, 47% EBITDA margins, and over 35% net profit margins, supported by premium pricing and lean operations. The brokerage sees significant upside, calling the stock undervalued compared to peers.