1. At a Glance
- IPO Size: ₹792 Cr (Fresh Issue)
- Price Band: ₹140 – ₹150
- Shares: 5.28 Cr
- Lot Size: 100 shares (₹14,000 min)
- Listing: BSE, NSE (Aug 6, 2025)
- Promoter stake: 91.78% → 81.86%
- FY25 Revenue ₹569 Cr, PAT ₹228 Cr
- Post IPO P/E: 32× (because why not?)
2. Intro – Why This Matters
Imagine buying a penthouse only to find the swimming pool is still under construction. This IPO feels the same. Sri Lotus Developers is rolling in glamour – luxury towers, Bollywood investors, record profit growth – but the valuation screams “priced for perfection.”
Key stats to make you raise an eyebrow:
- PAT +91% in FY25
- Debt down 70% (₹428 Cr → ₹122 Cr)
3. Business Model – WTF Do They Even Do?
They build homes where even the garage smells like imported leather. The focus is:
- Luxury Residences: 2/3 BHK ₹3–7 Cr
- Ultra-Luxury: 4BHK+ & Penthouses >₹7 Cr
- Commercial: High-end office spaces
The kicker? They use an asset-light model – developing via agreements rather than hoarding landbanks. This keeps cash flowing while selling under construction (premium pricing, zero guilt).
4. Financials Overview – The Big Numbers
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 170 | 466 | 569 |
| EBITDA | 21 | 159 | 289 |
| PAT | 17 | 119 | 228 |
| Assets | 486 | 737 | 1,219 |
| Borrowings | 329 | 428 | 122 |
Verdict: Topline’s sprinting, bottom line’s on steroids.
5. Valuation – What’s This Stock Worth?
Two methods, one headache:
- P/E Basis: At upper band ₹150, post-issue EPS ₹4.66 → P/E 32×
- P/B Basis: BV ₹21.4, P/B ~7×
Fair Value? Somewhere between ₹120 – ₹145.
DCF whispers ₹130. Market screams ₹150. Someone’s lying.
6. What-If Scenarios – Choose Your Adventure
- Bull Case: Projects delivered on time, luxury demand stays hot, P/E holds. FV ₹160–₹170.
- Base Case: Margins normalize, growth slows. FV ₹130–₹140.
- Bear Case: Project delays + luxury demand dips. FV ₹100–₹110.
7. What’s Cooking – News, Triggers, Drama
- Bollywood A-listers parked money in pre-IPO placement (expect gossip).
- Pipeline: 11 upcoming luxury projects in Mumbai’s western suburbs.
- Order book fat, but execution is king.
- HNI buzz: “Ultra-luxury is recession-proof” (LOL).
8. Balance Sheet – Debt, Assets, Drama
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 486 | 737 | 1,219 |
| Liabilities | 438 | 567 | 286 |
| Net Worth | 48 | 170 | 932 |
| Borrowings | 329 | 428 | 122 |
Debt: Not drowning, just coughing.
9. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 12 | 88 | 210 |
| Investing CF | (40) | (120) | (250) |
| Financing CF | 15 | 60 | (190) |
Comment: Cash flow looks like a freelancer—busy but broke.
10. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 24.4% |
| ROCE | 27.2% |
| PAT Margin | 41.5% |
| D/E | 0.13 |
| P/E | 32× |
Punchline: ROCE hotter than a trending hashtag, but P/E drunk on optimism.
11. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 170 | 466 | 569 |
| EBITDA | 21 | 159 | 289 |
| PAT | 17 | 119 | 228 |
Commentary: Topline’s running, bottom line’s sprinting past it.
12. Peer Comparison – The Wedding Guest Table
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Oberoi Realty | 4,500 | 1,400 | 25× |
| Godrej Properties | 5,200 | 1,200 | 28× |
| Sri Lotus Developers | 569 | 228 | 32× |
Verdict: The least drunk guest at a wedding full of finance bros.
13. EduInvesting Verdict™
Sri Lotus Developers IPO is luxury wrapped in hype.
- Fundamentals: solid
- Execution: proven but untested at scale
- Valuation: champagne expensive
A decent pit stop in luxury realty, but don’t expect business class legroom.
Written by EduInvesting Team | 27 July 2025
Tags: Sri Lotus Developers, Luxury Realty IPO, ₹792 Cr IPO, EduInvesting Premium
