Sri Lotus Developers IPO — Should You Subscribe Or Not? Read Angel One Report For Key Details

Sri Lotus Developers Ltd. Rs 792-crore IPO comprises only of fresh issue, with no offer-for-sale component. The Mumbai-based real estate development company has fixed the price band in the range of Rs 140 to Rs 150 per equity share of the face value of Rs 1.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Angel One Report

Sri Lotus Developers Ltd. will open its initial public offering for subscription on July 30 and the offer closes on August 1.

The Mumbai-based real estate development company has fixed the price band in the range of Rs 140 to Rs 150 per equity share of the face value of Rs 1.

The Rs 792-crore IPO comprises only of fresh issue, with no offer-for-sale component.

Monarch Networth Capital Ltd., Motilal Oswal Investment Advisors Ltd. are the book-running lead managers for the public issue.

The shares will be listed on both the National Stock Exchange and the BSE on Aug 06.

Outlook

Sri Lotus Developers and Realty Ltd. delivered strong growth in FY25—revenue rose 19% to Rs 549.7 crore , while profit after tax surged ~91% to Rs 227.89 crore. The company posted a ROE of ~24.39%, ROCE of ~27.22%, with Ebitda margins of ~52.6%, and maintained a conservative debt-to-equity ratio of just 0.13.

The company is raising Rs 792 crore through a fresh issue of equity shares, of which approximately Rs 550 crore will be deployed towards investments in subsidiaries and the development of ongoing and upcoming projects, while the remainder will be utilized for working capital needs and general corporate purposes.

At a post-issue P/E of approximately 32.2x, the valuation of Sri Lotus Developers appears reasonable considering its strategic focus on Mumbai’s high-entry-barrier luxury redevelopmentsegment. We recommend a ‘Subscribe’ rating for long-term investors.

Key Risks

Key risks include the company’s high geographic concentration in Mumbai’s western suburbs, reliance on timely regulatory approvals for redevelopment projects, significant dependence on commercial revenue, relatively limited brand visibility compared to larger peers, and execution challenges across multiple ongoing and upcoming developments.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.