Sri Lotus Developers and Realty Limited

Industrials — Engineering & Construction · NSE

₹245.00+₹4.86 (+2.02%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:49 pm

Understanding the Business

Company site ↗

The 60-second version of Sri Lotus Developers and Realty Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sri Lotus Developers and Realty Limited develops residential and commercial projects in India. Its portfolio covers luxury and ultra-luxury residential and commercial properties, including retail spaces, commercial offices, and residences.

IndustryEngineering & Construction

SectorIndustrials

Employees77

Annual revenue₹769 Cr

How does it make money?

Turns over ₹769 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit, with ₹43 left at the operating level before interest, tax and depreciation. Each of its 77 employees supports ₹9.99 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.1%

What is the outlook?

1 analysts covering the stock expect revenue to change and earnings to grow about 47.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. earnings growth+47.1%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +361% while net margin moved +209% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+361%

Margin effect+209%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

40.9x

1.3Y Median

38.9x

16 monthly readings · mean 37.6x · range 22.1x–52.9x

Sector Median

30.1x

median of 3 sector peers

🟡Currently trading close to its 1.3y median of 38.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 36% above the peer median of 30.1x.

vs. its own history

Fair

38.9x median over 16 months · +5%

vs. sector peers

Expensive

30.1x median of 3 peers · +36%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

34.4x

PEG

0.29

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 14.6% to 42.9% over 3 years.
Debt is being paid down
Total debt is down 61% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 34.4% to 12.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.7% to 16.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 6.41x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 3053% against revenue up 361% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹326 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.6% to 42.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 61% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.41x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 3053% against revenue up 361%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 36% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 34.4% to 12.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 50% a year✓ 66.4% CAGR
Latest reported year was 52.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 41%✓ 42.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹326 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹11,974 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.88x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.99

Profitable

Profitable on a per-share basis

ROE

16.1%

Strong

Strong capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.41x

High

High leverage

Revenue Growth (YoY)

52.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

70.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹421 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

23.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

9.0%

Good

Assets are working hard

Operating Margin

39.7%

Good

Healthy core-business profitability

Net Margin

31.4%

Good

Strong bottom-line conversion

Current Ratio

4.02

Comfortable

Healthy short-term liquidity

52W Range Position

98%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

228.7 / 202.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹167 Cr	₹462 Cr	₹550 Cr	₹769 Cr	+66.4%
EBITDA	₹24 Cr	₹162 Cr	₹308 Cr	₹330 Cr	+138.4%
EBITDA Margin	14.6%	35.2%	56.1%	42.9%	—
PAT (Net Profit)	₹17 Cr	₹120 Cr	₹227 Cr	₹237 Cr	+142.4%
EPS	₹0.34	₹2.45	₹4.65	—	—
ROE	34.4%	70.7%	24.4%	12.4%	—
ROCE	28.7%	78.8%	31.2%	16.7%	—
Total Debt	₹330 Cr	₹427 Cr	₹122 Cr	₹130 Cr	-26.8%
Free Cash Flow	₹70 Cr	₹46 Cr	-₹21 Cr	-₹326 Cr	—

🟢 Revenue has grown at 66.4% a year over 3 years.

🟢 EBITDA has grown at 138.4% a year over 3 years.

🟢 EBITDA Margin has risen from 14.6% to 42.9% over 3 years (+28.3 pts).

🟢 PAT (Net Profit) has grown at 142.4% a year over 3 years.

🔴 ROE has fallen from 34.4% to 12.4% over 3 years (-22.0 pts).

🔴 ROCE has fallen from 28.7% to 16.7% over 3 years (-12.1 pts).

🟢 Total Debt has shrunk at 26.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹70 Cr to -₹326 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,351 Cr

Total Liabilities

₹433 Cr

Cash & Equivalents

₹749 Cr

Operating Cash Flow

-₹326 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

2.4%

Insider Holding

79.9%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

25 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹265

+8.2% vs CMP

Target Range

₹265 – ₹265

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive2 mixed1 negative2 general

Sri Lotus Developers & Realty Ltd (LOTUSDEV) Share Price

Business Today, 16 Oct

Price Action: Persistent Systems shares down 4% as profit falls; Sri Lotus Developers hits 52-week high

Moneycontrol.com, 16 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Sri Lotus Developers and Realty (NSEI:LOTUSDEV) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sri Lotus Developers Q2 IPO Report: ఇంకా వాడని ₹249 కోట్ల నిధులు.. ఇన్వెస్టర్లలో ఆందోళన!

Whalesbook, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sri Lotus Developers reports higher consolidated revenue and profit

Kalkine India, 16 Oct

Sri Lotus Developers Q2 results: Net profit jumps 78% as pre-sales rise 83%

CNBC TV18, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑