Sri Lotus Gets Motilal Oswal's 'Buy' Initiation, Sees 35% Upside Potential

Backed by best-in-class execution capabilities, Lotus is expected to achieve operating margins above 40% and net profit margins exceeding 35%..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..Motilal Oswal Report.Sri Lotus Developers and Realty Ltd. posted a 39% CAGR in pre-sales over the past three years, which is expected to accelerate to 129% over FY25-28, guided by its robust project pipeline and strong response to launches. Collections are also expected to clock 129% CAGR and reach Rs 40.2 billion by FY28.Additionally, backed by best-in-class execution capabilities, the company is expected to achieve operating margins above 40% and net profit margins exceeding 35%. With RoE/RoCE above 26% 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% and terminal growth of 2%, to arrive at an net asset value of Rs 121 billion or Rs 250/share. Accordingly, we initiate coverage on the stock with a Buy rating..Click on the attachment to read the full report:.Motilal Oswal Retains 'Buy' On Tata Consumer, Says Strong Harvest, Lower Tea Prices To Aid Profitability In H2.DISCLAIMERThis 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.

Sri Lotus Gets Motilal Oswal's 'Buy' Initiation, Sees 35% Upside Potential

Motilal Oswal is bullish on Lotus Developers as it initiates coverage on the stock, says can rally upto 35%.

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